The Standard Deviation of Returns, Calculated as the Square Root

question 19

True/False

The standard deviation of returns, calculated as the square root of the variance of returns, is a measure of total risk of an asset or portfolio.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates demands from the id, superego, and reality.

Id

A component of Sigmund Freud's model of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Self-Efficacy

One’s sense of competence and effectiveness.

Narcissistic

Pertaining to a personality trait characterized by excessive self-love, a need for admiration, and a lack of empathy for others.