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

question 58

Multiple Choice

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

• A) lower the level of specific 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:

Duty To Warn

The legal obligation to inform others about potential dangers or risks associated with a product, property, or situation.

Reasonable Buyer

A hypothetical person in the marketplace considered to be adequately informed, cautious, and not under any pressure to make a purchase.

Defects

Flaws or imperfections in products, property, or legal documents that can affect value or functionality.

Leasehold

A type of property interest that allows the leaseholder (tenant) to use and occupy land or property for a certain time, as dictated by a lease agreement.