For a given expected value, the smaller the standard deviation of the expected value, the larger the risk
Indicate whether the statement is true or false
False. The smaller the standard deviation the smaller the associated risk. The standard deviation is the square root of the variance, thus the smaller the variance the smaller the standard deviation. The smaller the variance of the expected value the smaller the risk.
You might also like to view...
When the Fed ________ the federal funds rate, the opportunity cost of firms' investment ________ and so the quantity of investment ________
A) increases; falls; increases B) decreases; falls; decreases C) increases; rises; decreases D) decreases; rises; decreases E) increases; rises; increases
If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Sources of funds in Country A's balance of payments are supplies of Country A's currency to the foreign exchange market. b. Uses of funds in Country A's balance of payments are demands for Country A's currency in the foreign exchange market. c. Uses of funds in Country A's balance of payments are supplies of Country A's currency in the foreign exchange market. d. Transactions in Country A's balance of payments have no counterpart in the foreign exchange market.
As marginal physical product diminishes, marginal revenue product
A. Rises at a diminishing rate and eventually falls. B. Also diminishes. C. Rises. D. Is not affected.
The best measure of average income for a country is
A. Real GDP. B. The economic growth rate. C. Per capita GDP. D. The capital stock of the economy.