The variance and standard deviation of an investment:a. increase as th
QUESTION
The variance and standard deviation of an investment:a. increase as the riskiness of the investment increase.b. increase as the expected return of the investment decreases.c. when they are negatively correlated, reduce the risk of the investment portfolio.d. if they are small, will result in a large covariation between it and other portfolio assets.e. Both a and df. all of the above
a. increase as the riskiness of the investment increase. The variance and standard deviation are the measures of dispersion of returns. As the returns from an investment bcome dispersed the riskiness of¦
e investment increases. Therefore variance and standard deviation of an investment increase as the riskiness of the investment increase.
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