Standard Deviation the Standard Deviation of the Past Five Monthly

question 112

Multiple Choice

Standard Deviation The standard deviation of the past five monthly returns for K and Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?

• A) 1.45%
• B) 1.62%
• C) 3.47%
• D) 3.76%

---

Definitions:

Lowest Volatility

The condition of experiencing the smallest degree of variation in price over a specified period, often sought after in stable investment options.

U.S. Dollar-Denominated Returns

The gains or losses on an investment reported in U.S. dollars, regardless of the currency of the initial investment.

Currency Selection Return

Currency Selection Return refers to the gains or losses resulting from the active management decision of choosing to invest in currencies expected to appreciate relative to others.

Cross Border Fund

An investment fund that has the capability to invest in financial assets across different countries.