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The Larger the Standard Deviation of Returns on an Investment

Question 48

Multiple Choice

The larger the standard deviation of returns on an investment, the _____. 


A) greater the chance that it will provide regular return to its investors
B) lower the chance that its realized return will be negative
C) greater the chance that its realized return will be equal to its expected return
D) lower the chance that its expected return will differ significantly from its market return
E) greater the chance that its realized return will differ significantly from its expected return

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