A stock with a larger standard deviation of annual returns is likely t…

Question

A stock with a larger standard deviation of annual returns is likely to land:

Accepted Answer

A. Further from average

1. A wider scatter means less predictability.
2. Any one year can be far off the mean.
3. So it lands further from average.
_Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._

Answer

Nearer to average

Answer

Exactly on average

Answer

Always above average

A stock with a larger standard deviation of annual returns is likely to land:

Keep practising Risk and Return