The Greater the Standard Deviation of an Investment

question 42

Multiple Choice

The greater the standard deviation of an investment:

• A)The lower the return
• B)The greater the risk
• C)The lower the risk
• D)The greater the return

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Definitions:

Generalizing From Small Sample Sizes

The logical fallacy of drawing broad conclusions from a small group of examples or data points.

Principle of Falsifiability

A criterion for scientific inquiry proposed by philosopher Karl Popper, stating that for a theory to be considered scientific, it must be able to be tested and potentially proven false.

Heritability of Personality

The extent to which genetic factors contribute to individual differences in personality traits.

Heritability

The genetic contribution to the variance seen in a population for any particular trait or behavior.