Which of the following statements regarding an investment's risk is not true?
A) Investors measure risk to determine the degree of uncertainty surrounding their future returns.
B) Risky stock will have a smaller range of returns and a smaller standard deviation of returns.
C) Investments with a wide range of returns have more risk.
D) Standard deviation measures the degree of volatility in the stock's return over time.

Question

Quizplus · Accepted Answer

B is not true because a risky stock typically has a wider range of returns and a larger standard deviation of returns, indicating more uncertainty and variability in its performance.

Which of the Following Statements Regarding an Investment's Risk Is