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Management · Q766

Financial Management

Graduate and Post Graduate · Management · question 766

Q766

Standard deviation of tighter probability distribution is

A.
long-termed
B.
short-termed
C.
risky
D.
smaller
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Standard deviation of tighter probability distribution is smaller. The smaller the standard deviation, the tighter the probability distribution, and the lower the risk.