If the Standard Deviation of Returns from an Investment Is

question 16

Multiple Choice

If the standard deviation of returns from an investment is zero, then:

• A)the risk associated with the investment is more than that of the investments that provide risk-free return.
• B)the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero.
• C)the scatter of the possible outcome from the investment is high and its investors demand higher return.
• D)the scatter of the possible outcome from the investment is low and its investors demand higher return.
• E)there is no risk associated with the investment; that is, the investment is risk free, because there is only one possible payoff.

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Definitions:

Intimacy

The feeling of being emotionally close to and connected with someone, often involving a sense of sharing and support.

Isolation

The experience of being separated from others, which can be physical, social, or emotional in nature.

Lonely

Experiencing a feeling of sadness or isolation due to a lack of companionship or separation from others.

Middle Adulthood

A life stage typically occurring from ages 40 to 65, characterized by stability, career consolidation, and heightened concern for the next generation.