Which of the Following Statements Is TRUE

question 38

Multiple Choice

Which of the following statements is TRUE?

• A)The more stable the possible returns, the greater the risk.
• B)Risk means the probability that the actual return from an investment is less than the expected return.
• C)The range is a more accurate measure of risk than the standard deviation, because the range uses the maximum and minimum values, whereas the standard deviation uses all the observations.
• D)Securities offering lower expected rates of return tend to be riskier.

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Definitions:

Starbucks Coffee

Starbucks Coffee is a global coffeehouse chain and brand originating from Seattle, Washington, known for its signature coffee drinks and emphasis on customer experience.

Absolute Value

The non-negative value of a number without regard to its sign; for example, the absolute value of both -5 and 5 is 5.

Perfectly Vertical

Describes a line or curve on a graph that has an infinite slope, representing a situation where a given variable is unaffected by changes in other variables.

New Substitutes

Refers to newly available goods or services that can replace or compete with existing ones, affecting demand and market dynamics.