21 What is a measure of the risk of returns on a security a. Standard deviation b. Geometric mean c. Capital gain d. Compounded rate of return 22 The correlation coefficient always ranges between a. 1.0 and +1.0 b. +1.0 and +3.0 c. 1.0 and +2.5 d. 1.0 and +2.0 23 Select the incorrect statement a. Operating leverage affects EBIT b. Financial leverage accelerates EPS under favorable conditions c. The percentage change in EPS due to a given percentage change in EBIT, is called degree of operating leverage d. Return on equity is obtained by dividing profit after tax by value of equity 25 Standard deviation a. Is always equal to one b. Can be either positive or negative value c. Always has a negative value d. Always has a positive value