If the standard deviation of return on the stocks of the S&P/TSX Composite Index has been approximately 24% per year over the last decade, it must be true that half of the firms in the index have a standard deviation of return below 24% over the same period.

Question

Quizplus · Accepted Answer

The standard deviation of the index is a measure of the overall volatility of the index, not the individual stocks. It does not imply that half of the firms have a standard deviation below this level.

If the Standard Deviation of Return on the Stocks of the S&P/TSX