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    Fundamentals of Investments
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    Exam 2: Diversification and Risky Asset Allocation
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    As the Probabilities Associated with the Expected Returns of an Asset
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As the Probabilities Associated with the Expected Returns of an Asset

Question 57

Question 57

Multiple Choice

As the probabilities associated with the expected returns of an asset change, the standard deviation of the asset will:


A) increase.
B) decrease.
C) remain the same.
D) increase or decrease.
E) decrease if the expected return decreases.

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