The Higher the Standard Deviation of Returns on an Asset,the

question 88

Multiple Choice

The higher the standard deviation of returns on an asset,the ________ the asset's ________.

• A) greater; risk
• B) smaller; risk
• C) greater; expected return
• D) smaller; expected return

---

Definitions:

Indirect Approach

The indirect approach involves presenting background and supportive information before revealing the main message or conclusion, often used in sensitive or controversial contexts.

Buffer

A temporary storage area used to manage data transfer between devices or processes that operate at different speeds or with different priorities.

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts.

Positive Statement

A factual assertion that can be tested or verified, often used in economics to describe how the world is, as opposed to how it should be.