The _____ of an Investment Is a Measure of the Tightness

question 23

Multiple Choice

The _____ of an investment is a measure of the tightness, or variability, of its set of returns. 

• A)correlation coefficient
• B)standard deviation of the returns
• C)beta coefficient
• D)coefficient of variation
• E)expected return

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Definitions:

Bank Account

An account held at a financial institution that allows for the deposit and withdrawal of money.

Annual Withdrawals

The amount of money that an individual withdraws from an investment or savings account each year.

Interest

The charge for borrowing money or the return earned on an investment, typically expressed as a percentage.

Years

A measurement of time consisting of 12 months or 365 days, used in financial calculations to determine periods.