If One Project Has a Higher Standard Deviation Than Another

question 64

Multiple Choice

If one project has a higher standard deviation than another,

• A) it may have a lower risk.
• B) it may have a lower expected value.
• C) it has fewer possible outcomes.
• D) it may be riskier, but this can only be determined by the coefficient of variation.

---

Definitions:

Moving Expense

Costs associated with relocating for a job or business, which were deductible under certain conditions pre-2018 Tax Cuts and Jobs Act.

High Deductible Health Plan

A health insurance plan with lower premiums and higher deductibles than traditional health plans.

HSA

A Health Savings Account (HSA) is a tax-advantaged savings account designed for individuals with high-deductible health plans to save for medical expenses.

Moving Expenses

are costs associated with relocating for work which, under certain circumstances, may be deducted from taxable income.