Author Question: The larger the variance, the smaller the dispersion. Indicate whether the statement is true or ... (Read 28 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
The larger the variance, the smaller the dispersion.
 
  Indicate whether the statement is true or false.

Question 2

If expected return is less than required return on an asset, rational investors will:
 
  A) Buy the asset, which will drive the price up and cause expected return to reach the required return.
  B) Sell the asset, which will drive the price down and cause the expected return to rise.
  C) Sell the asset, which will drive the price up and cause the expected return to drop.
  D) Buy the asset, since price is expected to increase.



shewald78

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

Answer: FALSE
Explanation: The larger the variance, the greater the dispersion.

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

For a complete list of videos, visit our video library