The larger an investment's standard deviation, the smaller is the element of risk.

Name: The larger an investment's standard deviation, the smaller is the element of risk.
Brand: Quizplus
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Question

The larger an investment's standard deviation, the smaller is the element of risk.​

Quizplus · Accepted Answer

The larger the standard deviation of an investment, the greater the element of risk. Standard deviation is a measure of the volatility or variability of returns, and a higher standard deviation indicates a wider range of possible outcomes and higher risk.

The Larger an Investment's Standard Deviation, the Smaller Is the Element