Asked by Jacob Rosmarin on Apr 26, 2024
Verified
The standard deviation measures the volatility of a security's returns.
Standard Deviation
A measure of the amount of variation or dispersion in a set of values, widely used in finance to assess the volatility of an investment.
Volatility
Volatility refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of returns.
- Comprehend the influence of standard deviation on the risk associated with investments.
Verified Answer
KR
krista roblesApr 29, 2024
Final Answer :
True
Explanation :
The standard deviation is a statistical measure that quantifies the amount of variability or dispersion around an average, and in finance, it is commonly used to represent the volatility or risk associated with a security's returns.
Learning Objectives
- Comprehend the influence of standard deviation on the risk associated with investments.
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