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The---------- the standard deviation, the--------- the risk
The---------- the standard deviation, the--------- the risk. a. lower; lower b. higher; lower c. lower; higher d. more stable; higher
Expert Solution
In Investing, standard deviation acts as a measure of volatility.
The higher the standard deviation of returns over a period of time, the higher is the risk
The lower the standard deviation, the more stable the returns are and hence lower is the risk
Hence the correct answer is Option a: Lower, Lower
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