Question

As the standard deviation of outcomes for Martin Products increases, investing in Martin Products becomes riskier because:__________a. the range of outcomes having some probability becomes widerb. an outcome at or near the expected return of 10% becomes less likelyc. although the chances of some big gains increase, the chances for some big losses also increase.d. all of the above reasonse. none of the above reasons

Answer 1

d. all the reasons above

Answer 2

c. although the chances of some big gains increase, the chances for some big losses also increase.

Explanation:

In the Martin Products, there is a probability that the investment could either succeed or fail. The standard deviation of the outcome carried out to determine the risks involved in investing in his products helps in trying to offer the investors the clearer picture of the risks involved.