Over time,there has been a high correlation between actual rates of return on securities and the securities' standard deviations of returns.

Question

Quizplus · Accepted Answer

This is a true statement. The concept is known as the risk-return tradeoff, which suggests that higher returns tend to come with higher risk (as measured by standard deviation). This relationship has been observed and studied in finance for many years.

Over Time,there Has Been a High Correlation Between Actual Rates