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:

Twin-countershaft

A transmission design featuring two parallel countershafts, allowing for more gear ratio options and efficient power distribution.

Hi-Lo Flipper Switch

An electrical switch designed to change between high and low settings, often found in vehicle lighting or industrial machines for operational adjustments.

Slave Valve

Any of a number of types of air or hydraulic actuators.

Master Valve

A primary control valve used to start or stop fluid flow in a system, often used in piping and machinery for operational control.