Which of the Following Statements Are Correct Concerning the Variance

question 7

Multiple Choice

Which of the following statements are correct concerning the variance of the annual returns on an investment?
I. The larger the variance,the more the actual returns tend to differ from the average return.
II. The larger the variance,the larger the standard deviation.
III. The larger the variance,the greater the risk of the investment.
IV. The larger the variance,the higher the expected return.

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

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Definitions:

Local Environment

The immediate physical, biological, and cultural settings in which an organism or community lives.

Producer

An organism, typically a plant or algae, that creates its own food through photosynthesis, serving as a primary source of energy in an ecosystem.

Detritivore

An organism that feeds on and breaks down dead plant or animal matter, returning essential nutrients to the ecosystem.

Decomposer

Organisms, such as bacteria and fungi, that break down dead organisms and waste materials, recycling them into the ecosystem.