If the dispersion around a stocks return increases a the exp

If the dispersion around a stock\'s return increases a) the expected return decreases D) the standard deviation decreases c) the stock\'s price increases ? d) the stock\'s risk increases

Solution

Standard deviation is the dispersion of a stock behavior from its mean. If the dispersion is high, standard deviation will be high and vice-versa. Standard deviation is risk.

Hence, correct option is (d) the stock’s risk increase.