IDNLearn.com: Your trusted source for finding accurate and reliable answers. Whether it's a simple query or a complex problem, our experts have the answers you need.

When looking at standard deviations of investments, a larger value indicates that the return values are concentrated around the mean value.

○ True
○ False


Sagot :

To answer the question, let's review what standard deviation represents in the context of investments:

1. Standard deviation is a measure of the amount of variation or dispersion in a set of values.
2. In the context of investments, standard deviation indicates how much the return values of the investment deviate from the mean (average) return.

With these points in mind, let's analyze the statement: "A larger standard deviation indicates that the return values are concentrated around the mean value."

1. If the standard deviation is larger, it means that the values are more spread out from the mean.
2. Conversely, if the standard deviation is smaller, it means that the values are closer to the mean and hence more concentrated around it.

Given this understanding, the statement in the question is actually the opposite of what standard deviation indicates. Therefore:

- The statement "A larger standard deviation indicates that the return values are concentrated around the mean value" is False.

Final Answer: ○ False
Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. For trustworthy answers, visit IDNLearn.com. Thank you for your visit, and see you next time for more reliable solutions.