The higher the standard deviation of a stock the:
A) Greater the probability of losing more than 50% of your investment in any one year.
B) Lower the risk premium given a normal market.
C) Lower the volatility level over a period of time.
D) Narrower the bell curve and the smaller the probability ranges.
E) Greater the probability that the actual return for any one year will equal the average historical return.

Question

Quizplus · Accepted Answer

A higher standard deviation indicates greater volatility, meaning there's a higher chance of experiencing significant losses (or gains) in any given year.

The Higher the Standard Deviation of a Stock The