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Suppose it is appropriate to use a normal distribution to describe return and risk of a risky asset. The higher the standard deviation of the
Suppose it is appropriate to use a normal distribution to describe return and risk of a risky asset. The higher the standard deviation of the risky asset, the
A Greater the probability of losing more than of your investment in any one year.
B Greater the probability that the actual return for any one year will equal the average historical return.
C Lower the volatility level over a period of time.
D Lower the risk premium given a normal market.
E Narrower the bell curve and the smaller the probability ranges.
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