Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What does standard deviation measure in finance?
What does standard deviation measure in finance?
- The historical volatility of an investment (correct)
- The expected return on an investment
- The liquidity of an investment
- The market share of an investment
How is standard deviation applied in finance?
How is standard deviation applied in finance?
- To shed light on the historical volatility of an investment (correct)
- To determine the legal status of an investment
- To calculate the trading volume of an investment
- To predict the future returns of an investment
When standard deviation is applied to an investment's rate of return, what does it reveal?
When standard deviation is applied to an investment's rate of return, what does it reveal?
- The management style of the investment
- The historical volatility of the investment's returns (correct)
- The industry competition of the investment
- The capital structure of the investment
What aspect of an investment does standard deviation shed light on?
What aspect of an investment does standard deviation shed light on?
Signup and view all the answers
