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If you are dealing with percentage returns, then which of the following is gener

ID: 2902308 • Letter: I

Question

If you are dealing with percentage returns, then which of the following is generally true?
A The variance of the return distribution is generally smaller than the standard deviation B The variance of the return distribution is generally larger than the standard deviation C The variance of the return distribution is measured in the same units as expected return D None of the above is generally true If you are dealing with percentage returns, then which of the following is generally true?
A The variance of the return distribution is generally smaller than the standard deviation B The variance of the return distribution is generally larger than the standard deviation C The variance of the return distribution is measured in the same units as expected return D None of the above is generally true

Explanation / Answer

The variance of the return distribution is generally larger than the standard deviation

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