The Standard Deviation of a Risk-Free Asset Is

question 63

Multiple Choice

The standard deviation of a risk-free asset is

• A)0.
• B)−1.
• C)+1.
• D)between 0 and −1.
• E)between 0 and +1.

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Definitions:

Proprietary Income

Income generated from owning a business or holding exclusive rights to a product or service.

Government-Run Businesses

Enterprises or organizations that are owned and operated by the government rather than by private individuals or other businesses.

Personal Income Tax

A tax levied on the taxable income of individuals, households, and unincorporated firms.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes, determined by subtracting allowable deductions from gross income.