Question: Suppose the standard deviation for the Martin Products Distribution is 4 . 0 . If an investor is hoping for a return of at least
Suppose the standard deviation for the Martin Products Distribution is If an investor is hoping for a return of at least the chances that investing in Martin Products will return at least
a are much less than in investing in US Water
b are the same as investing in US Water
c are greater than in investing in US Water
d cannot be determined
As the standard deviation of outcomes for Martin Products increases, investing in Martin Products becomes riskier because
a the range of outcomes having some probability becomes wider
b an outcome at or near the expected return of becomes less likely
c although the chances of some big gains increase, the chances for some big losses also increase.
d all of the above reasons
e none of the above reasons
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