The ____ the Probability Distribution,the ____ Variability There Is and the ____

question 103

Multiple Choice

The ____ the probability distribution,the ____ variability there is and the ____ likely it is that the actual outcome will approach the expected value.

• A) looser;less;more
• B) tighter;more;less
• C) tighter;less;more
• D) looser;more;less
• E) both c and d are correct.

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Definitions:

Total Return

The overall financial benefit (or loss) of an investment over a specified period, including both capital gains and dividends.

Beta

A scale for calculating the instability, or regular risk, of a security or combined investments relative to the market in its entirety.

Systematic Risk

The risk inherent to the entire market or market segment, not reducible through diversification.

Security Market Line

A line on a chart that displays the relationship between risk and the expected return of the market portfolio. It serves as a graphical representation of the Capital Asset Pricing Model (CAPM).