Which statement is true?Group of answer choicesThe larger the standard deviation, the higher the total...

Mollie Wise

Mollie Wise

Answered

2022-12-04

Which statement is true?
Group of answer choices
The larger the standard deviation, the higher the total risk.
The larger the standard deviation, the lower the total risk.
The standard deviation is not an indication of total risk.
None of these are correct.

Answer & Explanation

rezvanifanFdT

rezvanifanFdT

Expert

2022-12-05Added 9 answers

Standard deviation represents the volatility of returns. If volatility is high, risk will be high and vice versa.
Hence, correct option is “The larger the standard deviation, the higher the total risk”.

Do you have a similar question?

Recalculate according to your conditions!

Ask your question.
Get your answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?