The Greater the Standard Deviation of an Investment the
When it comes to investing the data being analyzed is a set of the high and low points in a financial assets price over the course of a year with the annual rate of return acting as. Greater is the chance that the realized return will be negative. Risk Aversion A Microeconomic Explanation Risk Aversion Standard Deviation Explanation The standard deviation of this asset is. . The smaller an investments standard deviation the less volatile it is. Greater is the chance that the realized return will be negative C. The standard deviation for this investment is. Standard Deviation r -expected Rateof return2 r2 2- expected rate of return 22 9. Finance questions and answers. When prices move wildly standard deviation is high meaning an investment will be risky. This points to a more vast price range. The greater the standard deviation the greater the investments volatility. In all other cases the standard deviatio...