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Sagot :
If the dispersion of returns on a particular security is very spread out from the security's mean return, the security is highly risk
What is meant by dispersion of returns ?
Dispersion in finance refers to a range of potential returns on an investment. It is a tool to assess how risky an investment is. It is a dangerous investment if the dispersion is large because there are several possible values for the return on that investment.
The range of distribution of information regarding an expected value is referred to as dispersion. It displays the relationship between the distribution and the reference point or centre value. When determining the quality, volatility, and yield of data for any statistical observation, it is a crucial consideration.
Dispersion is a statistical word that describes the magnitude of the expected value distribution for a given variable.
To learn more about dispersion refer to :
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