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:

Cash Payback Period

The duration needed for an investment to generate cash flows sufficient to recover the initial cost of the investment.

Net Cash Inflow

Net cash inflow refers to the difference between the cash inflows and outflows within a given period, indicating the net change in cash and cash equivalents resulting from a company's activities.

Cash Payback Period

The time it takes for an investment to generate cash flow sufficient to recover its initial cost.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been subtracted from total revenue.