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The higher the standard deviation of returns on a security, the _____ the possibility of a lower return in one year than the average rate
The higher the standard deviation of returns on a security, the _____ the possibility of a lower return in one year than the average rate of return over many years. Further, the higher the standard deviation of returns on a security, the _____ the potential of a greater return in one year than the average rate of return over many years.
A. higher; higher
B. higher; lower
C. lower; higher
D. lower; lower
E. the standard deviation tells nothing about the expected rate of return.
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