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 considered 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
Correct Answer:
Verified
Correct Answer:
Verified
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