The Variance of an Investment's Returns Is a Measure of The

question 117

Multiple Choice

The variance of an investment's returns is a measure of the:

• A)Volatility of the rates of return
• B)Probability of a negative return
• C)Historic return over long periods
• D)Average value of the investment

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Definitions:

Capitalist System

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit, guided by market forces.

Gulf of Tonkin

Refers to an incident in 1964 off the coast of Vietnam that led to the U.S. Congress passing the Gulf of Tonkin Resolution, escalating American involvement in the Vietnam War.

Retaliatory Air Strikes

Military action taken in response to an initial attack, where air power is used to target specific locations or assets of the aggressor.

Vietnam War

A prolonged conflict from the 1950s to the 1970s in Vietnam, involving South Vietnam and its allies, notably the United States, against North Vietnam and its supporters, leading to significant social and political change.