Multiple Choice
If the variability of the returns on large-company stocks were to increase over the long-term,you would expect which of the following to occur as a result?
I.decrease in the average rate of return
II.increase in the risk premium
III.increase in the 68 percent probability range of the frequency distribution of returns
IV.decrease in the standard deviation
A) I only
B) IV only
C) II and III only
D) I and III only
E) II and IV only
Correct Answer:

Verified
Correct Answer:
Verified
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