Question

The greater chance of lower actual return than expected return and greater variation is indicated by

a.

smaller standard deviation

b.

larger standard deviation

c.

smaller variance

d.

larger variance

Answer: (b).larger standard deviation

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. The greater chance of lower actual return than expected return and greater variation is indicated by

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. The tendency of measuring correlation of two variables is classified as

Q. The size of the firm and the market or book ratio are variables which are related to

Q. A model in which the behavior of asset returns is measured for set of risk factors and market risk is classified as

Q. The relationship between risk and required return is classified as

Q. The tendency of moving together of two variables is classified as

Q. Of all the stocks in a portfolio, the required rate of return is classified as

Q. The risk in average individual stock can be reduced by placing an individual stock in

Q. The required return is 15% and the premium for risk is 11% then the risk free return would be

Q. The market required return is subtracted from the risk free rate which is used to calculate

Q. An estimation by marginal investor, a higher expected return is earned on

Q. The term structure premium, an inflation of bond and bond default premium are included in

Q. Mostly in financials, the risk of portfolio is smaller than that of asset's

Q. If the risk can be eliminated with the help of diversification, then the relevant risk is

Q. The Treasury yielded by bond is 7% and the market required return is 13% then market risk premium will be

Q. The chance of occurrence of any event is classified as

Q. According to market risk premium, an amount of risk premium depends upon the investor

Q. When the changes in patents and industry competition occur, the required rate of return

Q. In an individual stock, the relevant risk is classified as

Q. The type of premium asked by the investors for bearing the risk on average stock is classified as

Q. The portfolio which consists of perfectly positive correlated assets having no effect of

Recommended Subjects

Are you eager to expand your knowledge beyond Financial Management and Financial Markets? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!