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We Can Be More Confident That Standard Deviation Is a Good

Question 7

Multiple Choice

We can be more confident that standard deviation is a good measure of the risk of an asset (held in isolation) when


A) the number of different possible returns on the asset rises.
B) the probabilities attached to the possible returns on the asset are less equal.
C) the possible returns on the asset are distributed symmetrically around the mean.
D) the asset has a longer maturity.

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