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1. What is the statistical standard deviation (s.d.), and how is it applied in Financial Management? Group of answer choices a. It is the square

1. What is the statistical standard deviation (s.d.), and how is it applied in Financial Management?

Group of answer choices

a. It is the square root of the Variance. It (s.d.) is used to indicate the level of risk involved. The larger the s.d. is, the riskier the investment is perceived.

b. It represents the average of the squared distances of the data from the mean (avg.) value. It is used to indicate the level of risk involved. The larger it is, the riskier the investment is

c. It is the squared value of the Variance. It (s.d.) is used to indicate the level of risk involved. The smaller it is, the riskier the investment is considered.

d. It represents the central tendency of the data by showing the size of dispersion. It (s.d.) is used to indicate the level of risk involved. The smaller s.d. is, the riskier the investment is considered.

2. Which of the following describes Beta most appropriately?

Group of answer choices

1) It is a financial index that indicates the level of risk of one company.

2) It represents a specific companys risk level in comparison with that of the entire market.

3) If the BETA is larger than 1, the company is considered riskier than the entire market, and vice versa.

4) All of the above

5) both 1 & 3 above

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