The Standard Deviation for a Set of Stock Returns Can

question 35

Multiple Choice

The standard deviation for a set of stock returns can be calculated as the

• A)variance squared.
• B)positive square root of the variance.
• C)positive square root of the average return.
• D)average return divided by N minus one,where N is the number of returns.
• E)average squared difference between the actual return and the average return.

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Definitions:

Collusion

A secret or illegal cooperation or conspiracy, especially between parties to deceive or defraud others.

Barriers to Entry

Obstacles that make it difficult to enter a given market, potentially including high startup costs, strict regulations, or strong competition.

Few Firms

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Prime Rate

The interest rate that banks charge their most creditworthy customers, often used as a benchmark in lending rates.