For returns data, the absolute value of the sample mean is generally larger than the sample standard deviation.
Select one:
True
False
Answer
TRUE
Explanation
I would believe this is true because inn returns data, we take zero to be a special value and any time zero is a special value, then the standard deviation is greater than the mean, the most common reason is that the data have strong positive skew. Additionally, we would note that this tends to happen with variables determined by positive feedback, where the relationship is that the larger the value, the faster it grows.
