If the variability of the returns on large-company stocks, Ask an Expert

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If the variability of the returns on large-company stocks were to increase over the long-term, you would expect which of the following to occur as a result?

I. decrease in the average rate of return

II. increase in the risk premium

III. increase in the 68 percent probability range of the frequency distribution of returns

IV. decrease in the standard deviation

II and IV only

I only

IV only

I and III only

II and III only

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91547821

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