Question: Why does a risk-free security have zero variance (or zero standard deviation)? a. Because the actual return is always equal to the expected return b.
Why does a risk-free security have zero variance (or zero standard deviation)? a. Because the actual return is always equal to the expected return b. Because the expected return is always lower than the actual return c. Because the actual returns are always zero d. Because the expected return is always greater than the actual return
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
