Which of the Following Statements Are Correct Concerning the Variance

question 7

Multiple Choice

Which of the following statements are correct concerning the variance of the annual returns on an investment?
I. The larger the variance,the more the actual returns tend to differ from the average return.
II. The larger the variance,the larger the standard deviation.
III. The larger the variance,the greater the risk of the investment.
IV. The larger the variance,the higher the expected return.

• A) I and III only
• B) II, III, and IV only
• C) I, III, and IV only
• D) I, II, and III only
• E) I, II, III, and IV

---

Definitions:

Social Environment

The immediate physical and social setting in which people live or in which something happens or develops, including the culture, institutions, and people around them.

Ongoing Process

A continuous and dynamic series of actions or operations that persist over time.

Sociograms

A visual tool used to map out the relationships and social dynamics within a group, often used in social psychology.

Interactional Patterns

Recurrent ways in which individuals engage with and respond to one another within a social context, which can influence group dynamics and relationships.