easy · Principles of Finance risk-return-portfolio

Standard deviation is a common way to measure an investment's risk.

What does a higher standard deviation of returns indicate?

  1. More stable, more predictable returns
  2. A guaranteed higher return
  3. More volatile, less predictable returns
  4. Nothing about risk — only about average return

Sign up free to see the explanation and track your rank →

More Principles of Finance risk-return-portfolio practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 75,000+ practice questions, 26,500+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials