Which of the Following Statements Are Correct Concerning the Variance

question 7

Multiple Choice

Which of the following statements are correct concerning the variance of the annual returns on an investment?
I. The larger the variance,the more the actual returns tend to differ from the average return.
II. The larger the variance,the larger the standard deviation.
III. The larger the variance,the greater the risk of the investment.
IV. The larger the variance,the higher the expected return.

• A) I and III only
• B) II, III, and IV only
• C) I, III, and IV only
• D) I, II, and III only
• E) I, II, III, and IV

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Definitions:

Locus of Control

A psychological concept referring to an individual’s belief about the extent to which their actions influence the outcomes in their life.

Ambulatory Care Program

A healthcare service provided to patients who are not admitted to the hospital and can walk (ambulate), including clinics and day surgery centers.

Health Promotion Activities

Interventions or actions aimed at enhancing the health and well-being of individuals or communities through education, policy-making, and environmental changes.

Risk Appraisal

The process of evaluating the potential risks involved in a particular situation or for a specific individual.