Variability of the returns

Reference no: EM1351316

If variability of the returns on big corporation stocks were to rise over the long term you would expect which of the following to occur as a result.

1. decrease in the average rate of return
2. increase in the risk premium
3. increase in the 68 percent probability range of the frequency distribution of returns
4. decrease in the standard deviation

A. 1 only
B. 4 only
c. 2 and 3 only
d. 1 and 3 only
e 2 and 4 only

Reference no: EM1351316

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