Vidyalelo
Commerce · Q245

Financial Management

Graduate and Post Graduate · Commerce · question 245

Q245

If the dispersion around a security's return is larger ____________.

A.
the expected return is smaller
B.
the standard deviation is smaller
C.
the stock's price is higher
D.
the security's risk is higher
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
If the dispersion around a security's return is larger the security's risk is higher. A security risk assessment identifies, assesses, and implements key security controls in applications.