Answer the following statements true (T) or false (F)

Question

1) Standard deviation is a measure of relative dispersion that is useful in comparing the risks of assets with different expected returns.
2) A normal probability distribution is an asymmetrical distribution whose shape resembles a pyramid.
3) A lower coefficient of variation indicates that an asset has higher variability relative to its expected
return.
4) If an asset's returns display a higher coefficient of variation, that suggests the asset is riskier.
5) Standard deviation measures the dispersion of an investment's return around the expected return.

Answer 1

1) FALSE
2) FALSE
3) FALSE
4) TRUE
5) TRUE