Chapter 001 A Brief History of Risk and Return39.The mean plus or minus one standard deviation defines the _____ percent probability range of a normal distribution.
LEVEL OF DIFFICULTY: CORELearning Objective: 1-3SECTION: 1.4TOPIC: PROBABILITY RANGES40.Assume you own a portfolio that is invested 50 percent in large-company stocks and 50 percent in corporate bonds. If you want to increase the potential annual return on this portfolio, you could:
LEVEL OF DIFFICULTY: INTERMEDIATELearning Objective: 1-4SECTION: 1.4TOPIC: RISK AND RETURN41.Which one of the following statements is correct?A.The standard deviation of the returns on Treasury bills is zero.B.Large-company stocks are historically riskier than small-company stocks.C.The variance is a means of measuring the volatility of returns on an investment.D.A risky asset will always have a higher annual rate of return than a riskless asset.E.There is an indirect relationship between risk and return.
LEVEL OF DIFFICULTY: INTERMEDIATELearning Objective: 1-4SECTION: 1.4TOPIC: RISK AND RETURN1-14