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.

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Definitions:

Management Function

Refers to the primary roles or activities (planning, organizing, leading, controlling) that managers perform to achieve organizational goals.

Company's Commitment

The dedication and loyalty a company demonstrates towards its goals, employees, and ethical standards.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes in an organization or government.

Organizing

Organizing divides up tasks and arranges resources to accomplish them.