Which of the Following Statements Are Correct Concerning the Variance

question 65

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 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:

Punitive Damages

Compensation awarded in a lawsuit that exceeds simple restitution and is intended to punish the defendant for wrongdoing and deter future similar acts.

Arbitrator's Award

The decision or outcome given by an arbitrator, who is a neutral third party, at the conclusion of an arbitration proceeding.

Authority

The power or right given to an individual or body to make decisions, enforce rules, or govern.

Advantage

A condition or circumstance that puts one in a favorable or superior position as compared to others.