What Is the Approximate Standard Deviation of Returns for a One-Year

question 32

Multiple Choice

What is the approximate standard deviation of returns for a one-year project that is equally likely to return 100% as it is to provide a 100% loss?

• A) 0%
• B) 50%
• C) 71%
• D)100%

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Definitions:

Placebo

A substance or treatment with no therapeutic effect, often used as a control in testing new drugs.

Low Dose

Refers to a small amount of a substance or medication administered or applied, typically less than the standard or therapeutic amount.

High Dose

High dose refers to the administration or use of a substantial amount of a substance or medication, typically higher than the standard or recommended level.

Tennis Rackets

Sporting equipment consisting of a handle and an open hoop with a network of strings, used to hit a tennis ball in the game of tennis.