The greater the standard deviation, the lower the risk.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the spread of data.

Investment Risk

The possibility of losing some or all of the invested capital, with the potential for variability in investment returns.

Gain an understanding of how standard deviation and variance serve as measures for assessing risk and volatility in investment portfolios.

Verified Answer

Final Answer :

False

Explanation :

A greater standard deviation indicates a wider dispersion of data points from the mean, suggesting higher variability and therefore higher risk.

Learning Objectives

Gain an understanding of how standard deviation and variance serve as measures for assessing risk and volatility in investment portfolios.