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.

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Definitions:

Company Specificity

Characteristics or practices specific to a particular company, not applicable to the industry or sector at large.

Location Specificity

Refers to the unique attributes and characteristics of a particular geographical location that affect businesses, strategies, and operations.

Corporate Human Capital

The collective skills, knowledge, and abilities of an organization's workforce, which contribute to its competitive advantage and value.

Cultural Background

The environment, tradition, language, and social practices that individuals are raised in and identify with.