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Which of the Following Statements Is TRUE

Question 38

Multiple Choice

Which of the following statements is TRUE?


A) The more stable the possible returns, the greater the risk.
B) Risk means the probability that the actual return from an investment is less than the expected return.
C) The range is a more accurate measure of risk than the standard deviation, because the range uses the maximum and minimum values, whereas the standard deviation uses all the observations.
D) Securities offering lower expected rates of return tend to be riskier.

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