Standard deviation is a measure of which one of the following? A. Average rate of return B. Volatility C. Probability D. Risk premium E. Real returns Which one of the following is defined by its mean...

Standard deviation is a measure of which one of the following? A. Average rate of return B. Volatility C. Probability D. Risk premium E. Real returns Which one of the following is defined by its mean and its standard deviation? A. Arithmetic nominal return B. Geometric real return C. Normal distribution D. Variance E. Risk premium. The return earned in an average year over a multiyear period is called the _____average return. A. Arithmetic B. Standard C. Variant D. Geometric E. Real You note that the return on investment A tends to vary only slightly from its average, definitely less so than does investment B. Based on this, you believe that: A. A has lower inflation premium than B. B. A has a lower return volatility than B. C. A has a higher variance than B. D. A has a higher standard deviation than B E. A must be one of the smallest firms listed on the NYSE, while B must be one of the 500 largest stocks in the United States. Standard deviation is one of the most common measures of _____ A. The normal distribution B. The inflation rate C. The risk premium D. Return on investment E. Return volatility Security returns can be accurately modeled by using the _____ distribution form statistics. A. Normal B. Uniform C. Gamma D. Beta E. Poisson Which of the following is false regarding risk and return? A. The risk-free asset earns the lowest rate of return. B. The reward for bearing risk is known as the standard deviation. C. Based on historical data, there are ample rewards for bearing risk. D. An increase in the risk of an investment will result in an increased risk premium. E. In general, the higher the risk the higher the expected return.