The Wider the Dispersion of Returns on a Stock,the

question 100

Multiple Choice

The wider the dispersion of returns on a stock,the:

• A) lower the expected rate of return.
• B) higher the standard deviation.
• C) lower the real rate of return.
• D) lower the variance.

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Definitions:

Asset's Total Assets

The summation of everything of value owned by a person, company, or organization, including both current and non-current assets.

Stand-alone Risk

The risk associated with a single asset or investment, without considering the asset's interaction or diversification effects within a portfolio.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, used to assess the level of volatility relative to the mean.

Countercyclical

Describes economic policies or activities that move in opposition to the business cycle, aiming to stabilize the economy by reducing fluctuations.