Which Statement Is True

question 17

Multiple Choice

Which statement is true?

• A) The larger the standard deviation, the lower the total risk.
• B) The larger the standard deviation, the higher the total risk.
• C) The larger the standard deviation, the more portfolio risk.
• D) The standard deviation is not an indication of total risk.

---

Definitions:

Divergent Boundary

A tectonic plate boundary where two plates are moving away from each other, often resulting in the creation of new oceanic crust.

Subduction Zone

A region where one tectonic plate moves under another, often causing earthquakes and volcanic activity.

Convergent Boundary

A convergent boundary is a type of tectonic plate boundary where two plates move toward each other, often resulting in mountain building, earthquakes, and volcanic activity.

Plate Boundaries

The edges where two tectonic plates meet, characterized by seismic and volcanic activity, along which plates move apart, together or past each other.