CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The ______ the dispersion around the mean, the ______ the risk.

I. greater; lower
II. greater; greater
III. lower; lower
IV. lower; greater
Correct Answer: II and III

Risk: uncertainty concerning the outcome of an investment or other situation. It is often defined as the variability of returns from an investment. The greater the range of possible outcomes, the greater the risk.

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