Why does a risk-free security have zero variance (or zero standard deviation)? a. Because the actual return is always equal to the expected return b. Because the expected return is always lower than the actual return c. Because the actual returns are always zero d. Because the expected return is always greater than the actual return
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This means that the actual return is always equal to the expected return. In other words, there is no uncertainty or variability in the returns of a risk-free security. Show more…
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