Which One of the Following Statements Concerning the Standard Deviation

question 50

Multiple Choice

Which one of the following statements concerning the standard deviation is correct?

• A)The standard deviation is a measure of total return.
• B)The higher the standard deviation,the higher the expected return.
• C)The standard deviation varies in direct relation to increases in dividend yield.
• D)The higher the standard deviation,the lower the risk.
• E)The lower the standard deviation,the less certain the rate of return in any one given year.

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Definitions:

International Water Management Institute

A research organization that focuses on the sustainable use of water and land resources in developing countries to ensure food security and reduce poverty.

Clean Water

Water that is free of pollutants and contaminants, making it safe for human consumption and use.

Outlay

An amount of money spent on something, often related to business or project expenses.

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The proportion of a population living below the poverty line, measured by income level.