Because the statistic called the standard deviation measures the volatility of a variable, it is used to measure the return of a portfolio.

a. true

b. false

True. The standard deviation measures the volatility of a variable and the performance of a portfolio because it is a common dispersion measure that indicates the data with respect to the mean, indicating that the higher the standard deviation, the greater the dispersion of the data. The standard deviation is a measure of risk because of the greater the dispersion or variability of the returns of an asset, the greater the possibility that the expected and realized returns will be different from each other.