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Which of the following statements about the standard deviation are correct? I. The standard deviation is a measure of relative dispersion. II. Standard deviations should
Which of the following statements about the standard deviation are correct?
I. | The standard deviation is a measure of relative dispersion. |
II. | Standard deviations should be in conjunction with expected returns to compare investments. |
III. | The standard deviation is calculated by taking the square root of the variance. |
IV. | The higher the standard deviation of an investment, the lower its risk. |
Select one:
A.
I, III and IV only
B.
II and III only
C.
I, II and III only
D.
I and IV only
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