Which one of the following statements concerning the standard deviation is correct?
A)The standard deviation is a measure of total return.
B)The higher the standard deviation,the higher the expected return.
C)The standard deviation varies in direct relation to increases in dividend yield.
D)The higher the standard deviation,the lower the risk.
E)The lower the standard deviation,the less certain the rate of return in any one given year.

Question

Quizplus · Accepted Answer

The standard deviation is a measure of the dispersion or variability of returns. A higher standard deviation indicates a higher level of risk, which is often associated with the potential for higher returns.

Which One of the Following Statements Concerning the Standard Deviation