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The Lower the Standard Deviation of Returns on a Security,the

Question 27

Multiple Choice

The lower the standard deviation of returns on a security,the _____ the expected rate of return and the _____ the risk.


A) lower; lower
B) lower; higher
C) higher; lower
D) higher; higher
E) You cannot determine anything about the expected rate of return from the standard deviation.

Correct Answer:

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