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

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Definitions:

Information Flow

The movement and exchange of information within and between organizations, systems, or processes.

Inventory System

An organized method for managing and controlling the ordering, storage, and use of components that a company will use in the production of the items it will sell as well as the management of the finished products that are for sale.

Understocking

The condition of having insufficient inventory to meet demand, leading to potential lost sales and customer dissatisfaction.

Integrated Supply Chain

A holistic approach to supply chain management that emphasizes the coordination and synchronization of all elements of the supply chain, from raw materials to end customer.