The Larger the Standard Deviation of Returns on an Investment

question 48

Multiple Choice

The larger the standard deviation of returns on an investment, the _____. 

• A)greater the chance that it will provide regular return to its investors
• B)lower the chance that its realized return will be negative
• C)greater the chance that its realized return will be equal to its expected return
• D)lower the chance that its expected return will differ significantly from its market return
• E)greater the chance that its realized return will differ significantly from its expected return

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Definitions:

Genetic Inheritance

The process by which genetic information is passed on from parents to their offspring, determining traits and predispositions.

Biological Evolution

The process through which different kinds of living organisms are believed to have developed from earlier forms during the history of the earth.

Phenotype

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

Genotype

The genetic makeup of an individual organism, determining inherited characteristics.