Which of the Following Statements Is Correct

question 76

Multiple Choice

Which of the following statements is correct?

• A) A dominant portfolio has the best risk-return relationship as compared to other portfolios.
• B) It is not necessarily true that when an investment achieves a high return that it is risky.
• C) A low standard deviation means that the investment is less likely to achieve high returns, which means that it is more risky.
• D) None of the statements are correct.

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Definitions:

Bias

A systematic error in the collection, analysis, interpretation, or review of data that can lead to conclusions that are systematically different from the truth.

Probability Basis

The foundational likelihood or chance that a specific event will occur.

Statistical Testing

A methodological process used in statistics to determine the significance of data relative to a hypothesis.

Treatment Groups

In clinical trials, groups of participants receiving the intervention or treatment being studied, as opposed to control groups.