If stock A has a greater standard deviation than stock B then it must also have a greater return.

Question

Quizplus · Accepted Answer

The standard deviation measures the volatility or risk of a stock, while the return measures the amount of profit or loss generated by the stock. Just because a stock has a higher standard deviation does not necessarily mean it will have a higher return. Some high-risk stocks may have low returns, and some low-risk stocks may have high returns.

If Stock a Has a Greater Standard Deviation Than Stock