For a stock that displays a large standard deviation,the returns may be high but risk is high too.

Question

Quizplus · Accepted Answer

A large standard deviation is an indicator of high volatility in a stock's returns, which means that there is a greater range of possible outcomes and more uncertainty about future returns. While this may provide the potential for higher returns, it also increases the risk of experiencing significant losses. Therefore, a stock with a large standard deviation is generally considered to be more risky.

For a Stock That Displays a Large Standard Deviation,the Returns