If the standard deviation of returns from an investment is zero, then:
A) the risk associated with the investment is more than that of the investments that provide risk-free return.
B) the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero.
C) the scatter of the possible outcome from the investment is high and its investors demand higher return.
D) the scatter of the possible outcome from the investment is low and its investors demand higher return.
E) there is no risk associated with the investment; that is, the investment is risk free, because there is only one possible payoff.
Correct Answer:
Verified
Q12: Diversification refers to the _.
A)reduction of the
Q13: The probability distribution of the payoffs on
Q14: Combining two stocks to form a portfolio
Q15: Which of the following portfolios would have
Q16: Darren has the option of investing in
Q18: Which of the following statements gives the
Q19: The variance of the returns of Stock
Q20: Which of the following measures captures the
Q21: Which of the following securities generates a
Q22: The part of a security's risk associated
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents