The Higher the Standard Deviation of a Stock's Annual Returns

question 61

Multiple Choice

The higher the standard deviation of a stock's annual returns, the:

• A) lower the level of unique risk.
• B) lower the expected rate of return.
• C) higher the accuracy of predictions of the stock's return for any given year.
• D)wider the dispersion of those returns over time.

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Definitions:

Delusional System

A fixed, false belief or set of beliefs that are strongly held despite contradictory evidence, often associated with psychiatric disorders.

Insane

A term historically used to describe individuals with mental health conditions affecting their ability to think, feel, and behave clearly, though it is now considered outdated and stigmatizing.

Bulimia Nervosa

An eating disorder characterized by cycles of binge eating followed by behaviors to avoid weight gain, such as self-induced vomiting, excessive exercise, or the use of laxatives.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extremely low body weight relative to stature, an intense fear of gaining weight, and a distorted perception of body weight and shape.