Ch.10 · Risk Measures and Ratios · medium
What is 'standard deviation' as a measure of risk in mutual funds?
0% of students got this wrong
EXPLANATION
Standard deviation measures how much a scheme's returns vary from its average return over a period. A higher standard deviation means returns are more volatile (spread widely above and below the average), indicating higher risk. For example, a fund with 15% average return and 20% standard deviation has experienced returns between -5% and 35% frequently.
Practising Chapter 10 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.