The Standard Deviation on Small US Company Shares

question 37

Multiple Choice

The standard deviation on small US company shares:
I.is greater than the standard deviation on large company shares.
II.is less than the standard deviation on large company shares.
III.had an average value of about 33 % for the period 1926 to 2005.
IV.had an average value of about 20 % for the period 1926 to 2005.

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

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Definitions:

Pure Command Economy

An economic system where all production, investment, prices, and incomes are controlled by the government.

Privately Owned

Refers to properties, businesses, or assets that are owned by individuals or private companies and not by the state or public entities.

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.

Centralized Planning

A system of economy where all choices related to the creation and allocation of goods and services are made by a central governmental body.