The Standard Deviation Is a Better Measure of Risk Than

question 6

True/False

The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly.

---

Definitions:

Pension Plan

A financial arrangement designed to provide individuals with an income during retirement, usually through contributions made during their working years.

Seniority System

A workplace policy where decisions regarding promotions, layoffs, and other job-related matters are made based on an employee's length of service.

Self-motivated

Having the inner drive or initiative to pursue goals or tasks without external encouragement or pressure.

Challenges

Difficulties that need to be overcome or problems that require solutions, often stimulating personal growth or improvement.