A measure of uncertainty in stock returns is
A)weighted average.
B)mean.
C)correlation coefficient.
D)standard deviation.

Question

Quizplus · Accepted Answer

Standard deviation is the best choice for measuring uncertainty in stock returns as it measures the amount of variation or dispersion of the returns from their average or expected value. It provides an indication of the level of risk associated with the investment, with higher standard deviation indicating higher risk.

A Measure of Uncertainty in Stock Returns Is