Standard deviation of stock rate of return

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Reference no: EM131303657

Which of the following statements concerning the standard deviation of a stock’s rate of return is (are) correct?

(1) The standard deviation of a stock’s rate of return reflects both the systematic and unsystematic risks associated with the stock.

(2) Approximately 68% of the rates of return on the stock will fall within plus or minus one standard deviation of the average rate of return

A. (1) only

B. (2) only

C. Both (1) and (2)

D. Neither (1) nor (2)

Reference no: EM131303657

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