Asked by James Coleman on Jun 04, 2024
Verified
The higher the standard deviation, the less certain the rate of return in any one given year.
Standard Deviation
An evaluative statistical figure expressing the level of fluctuation or diversity among values in a particular dataset.
Rate Of Return
A rise or drop in an investment's value within a specific timeframe, shown as a percentage of the investment’s original cost.
- Learn about the effect of standard deviation on the risk levels of investments.
Verified Answer
ZK
Zybrea KnightJun 09, 2024
Final Answer :
True
Explanation :
A higher standard deviation indicates a wider dispersion of returns around the mean, implying greater uncertainty or variability in the rate of return for any given year.
Learning Objectives
- Learn about the effect of standard deviation on the risk levels of investments.
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