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hram777 [196]
3 years ago
11

If the standard deviation of returns from an investment is zero, then: the risk associated with the investment is more than that

of the investments that provide risk-free return. the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero. the scatter of the possible outcome from the investment is high and its investors demand higher return. the scatter of the possible outcome from the investment is low and its investors demand higher return. there is no risk associated with the investment; that is, the investment is risk free, because there is only one possible payoff.
Business
1 answer:
MariettaO [177]3 years ago
3 0

Answer:

the expected return from the investment is higher than that of those investments whose standard deviation is greater than zero.

Explanation:

As for the coefficient of variation which clearly defines the difference in values from the mean value in the data set.

It clearly defines as standard deviation/mean.

Where standard deviation is 0 the coefficient will also be 0 which shall represent the risk associated with it.

The least the coefficient of variation the least the risk with maximum return.

Thus, the correct statement will be concluding that the expected return from this investment will be higher than the returns from the project in which standard deviation is more than 0.

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