The Tighter the Probability Distribution of Its Expected Future Returns

question 81

True/False

The tighter the probability distribution of its expected future returns, the greater the risk of a given investment as measured by its standard deviation.

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Definitions:

Potential Market

The segment of the population that is deemed likely to buy a product or service based on certain criteria or attributes.

Liability Law

A legal sector dealing with laws that determine responsibility and obligations among parties in civil legal matters.

Technical Communication

The practice of conveying complex information in a clear and accessible manner to a specific audience, often related to technical or specialized fields.

Product Safety

The practice of ensuring that products are free from hazards that could cause harm to consumers.