The variance of an investment opportunity:
A) cannot be negative.
B) has the same unit of measure as the variable from which it is derived.
C) is a measure of central tendency.
D) is unrelated to the standard deviation.

Question

Quizplus · Accepted Answer

The variance of an investment opportunity cannot be negative because it is a measure of the variability of returns and variability cannot be negative.

The Variance of an Investment Opportunity