The Wider the Distribution of an Investment's Returns Over Time

question 81

Multiple Choice

The wider the distribution of an investment's returns over time, the ________ the expected average rate of return and the ________ the expected volatility of those returns.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower
• E)The distribution of returns does not affect the expected average rate of return.

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Definitions:

Amphibian Heart

A three-chambered heart found in amphibians that consists of two atria and one ventricle, partially separating oxygenated and deoxygenated blood.

Oxygen-Rich

Referring to environments or substances with a high concentration of oxygen, such as certain atmospheric layers or oxygenated blood.

Oxygen-Poor

This term describes environments or situations where there is a deficiency of oxygen, often leading to anaerobic conditions.