If the Standard Deviation of the Score on This Test

question 76

Multiple Choice

If the standard deviation of the score on this test is zero, we should conclude

• A) nobody received even one question correct.
• B) half the scores were below the mean.
• C) half the scores were above the mean.
• D) a computational error was made.
• E) everybody received the same score.

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Definitions:

Risk-Free Asset

A Risk-Free Asset is an investment that theoretically guarantees its return and has no variance in its expected payout, typically government-issued securities.

Asset Beta

A measure of the risk of an asset isolated from the firm's financial risk, particularly useful in capital asset pricing models (CAPM).

Risk-Free Asset

An investment with a guaranteed return, without any risk of financial loss.

Positive Rate

An interest rate or yield that is above zero, reflecting a positive return on investment.