What is the statistical standard deviation (s.d.), and how is it applied in Financial Management? Group...

What is the statistical standard deviation (s.d.), and how is it applied in Financial Management?

Group of answer choices

It is the square root of the Variance. It (s.d.) is used to indicate the level of risk involved. The larger the s.d. is, the riskier the investment is perceived.

It represents the average of the squared distances of the data from the mean (avg.) value. It is used to indicate the level of risk involved. The larger it is, the riskier the investment is

It is the squared value of the Variance. It (s.d.) is used to indicate the level of risk involved. The smaller it is, the riskier the investment is considered.

It represents the central tendency of the data by showing the size of dispersion. It (s.d.) is used to indicate the level of risk involved. The smaller s.d. is, the riskier the investment is considered.

Expert Solution

Option a is correct option. Standard Deviation is the measure of risk of portfolio or individual stock. It the the square root of the variance.
Other options are incorrect

jeff jeffy answered 2 years ago

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