Which of the Following Statements About the Standard Deviation Are

question 108

Multiple Choice

Which of the following statements about the standard deviation are correct?
I.The standard deviation is a measure of relative dispersion.
II.Standard deviations should be in conjunction with expected returns to compare investments.
III.The standard deviation is calculated by taking the square root of the variance.
IV.The higher the standard deviation of an investment, the lower its risk.

• A)I and IV only
• B)II and III only
• C)I, III and IV only
• D)I, II and III only

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as tobacco and alcohol, often imposed to discourage their use or to generate revenue.

Sales

The exchange of a commodity for money; the action of selling something.

Quota

A limit placed on the quantity of a specific good that can be imported or exported during a given timeframe, usually to protect domestic industries.

Excise Tax

A type of tax charged on specific goods, services, and activities, often with the intention of reducing their consumption or generating revenue.