An Investment Produced Annual Rates of Return of 4%, 8

question 127

Multiple Choice

An investment produced annual rates of return of 4%, 8%, 14% and 6%, respectively, over the past four years. What is the standard deviation of these returns?

• A) 3.7%
• B) 4.1%
• C) 4.3%
• D) 4.6%

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Definitions:

Liberalize International Trade

The process of reducing tariffs, quotas, and other barriers to allow for the free flow of goods and services across national borders.

Foreign Trade Competition

The competition that domestic companies face from abroad, influencing local markets, pricing, and product offerings.

European Union

A political and economic union of 27 European countries that are tied by common policies covering a wide range of areas, including trade, security, and law.

Common Fiscal Policy

A coordinated approach by multiple governments or entities to manage tax policies, government spending, and public debt to influence economic conditions.