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 2008.
IV.had an average value of about 20% for the period 1926 to 2008.
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 generally have higher volatility than large company stocks, making their standard deviation greater. Historical data shows an average standard deviation of about 33% for small company stocks from 1926 to 2008.

The Standard Deviation on Small Company Stocks