Which statement is true? Group of answer choices The larger the standard deviation, the higher the total risk. The larger the standard deviation, the lower the total risk. The standard deviation is not an indication of total risk. None of these are correct.

Mollie Wise

Mollie Wise

Answered question

2022-12-04

Which statement is true?
Group of answer choices
The larger the standard deviation, the higher the total risk.
The larger the standard deviation, the lower the total risk.
The standard deviation is not an indication of total risk.
None of these are correct.

Answer & Explanation

rezvanifanFdT

rezvanifanFdT

Beginner2022-12-05Added 9 answers

Standard deviation represents the volatility of returns. If volatility is high, risk will be high and vice versa.
Hence, correct option is “The larger the standard deviation, the higher the total risk”.

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