The standard deviation on small company stocks: I. is greater than the standard deviation on large company stocks.
II) is less than the standard deviation on large company stocks.
III) had an average value of about 33% for the period 1926 to 2011.
IV) had an average value of about 20% for the period 1926 to 2011.
A) I and III only
B) I and II only
C) II and III only
D) II and IV only
E) I and IV only

Question

Quizplus · Accepted Answer

Small company stocks typically have higher volatility and thus a greater standard deviation than large company stocks. Historical data shows that the average standard deviation for small company stocks was about 33% from 1926 to 2011.

The Standard Deviation on Small Company Stocks: I