Which of the Following Statements About the Standard Deviation Are

question 108

Multiple Choice

Which of the following statements about the standard deviation are correct?
I.The standard deviation is a measure of relative dispersion.
II.Standard deviations should be in conjunction with expected returns to compare investments.
III.The standard deviation is calculated by taking the square root of the variance.
IV.The higher the standard deviation of an investment, the lower its risk.

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

---

Definitions:

UCC

Stands for Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Congress

The bicameral legislature of the Federal Government of the United States, consisting of the House of Representatives and the Senate.

Lost Profits

Financial gains that could have been earned but were not because of a specific event or action that prevented such earnings.

Incidental Damages

Incidental damages refer to reasonable expenses incurred by a party as a result of another party’s breach of contract, including costs to mitigate damages.