Which of the Following Statements Concerning the Standard Deviation Are

question 78

Multiple Choice

Which of the following statements concerning the standard deviation are correct?
I. The greater the standard deviation,the lower the risk.
II. The standard deviation is a measure of volatility.
III. The higher the standard deviation,the less certain the rate of return in any one given year.
IV. The higher the standard deviation,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:

Economic Growth

An increase in the economy's capacity to produce goods and services, often measured by the rise in real GDP over time.

Government Size

Refers to the scope and scale of government operations and activities, including public spending, taxation, and the number of employees.

Tax-Transfer Activities

Government actions involving the collection of taxes and redistribution of income through spending and transfers to achieve economic objectives.

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen, representing the cost of forgone options.