The Standard Deviation Is Appropriate to Compare the Risk Between

question 10

Multiple Choice

The standard deviation is appropriate to compare the risk between two investments only if

• A) the expected returns from the investments are approximately equal
• B) the investments have similar life spans
• C) objective estimates of each possible outcome is available
• D) the coefficient of variation is equal to 1.0
• E) none of the above

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Definitions:

Psychoanalysis

A therapeutic approach and theory of psychotherapy developed by Sigmund Freud that emphasizes the role of unconscious factors in driving human behavior.

Freud

Sigmund Freud was a neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Observable Behavior

Actions or reactions of an individual in various situations that are visible and measurable, often used in behavioral psychology for analysis.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychotherapist.