Because of Differences in the Expected Returns of Different Securities

question 13

True/False

Because of differences in the expected returns of different securities, the standard deviation is not always an adequate measure of risk. However, the coefficient of variation will always allow an investor to properly compare the relative risks of any two securities.

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Definitions:

Ecotourism

A form of sustainable travel to natural areas, focusing on conserving the environment and improving the well-being of the local people.

Airport Tax

A charge levied on passengers by an airport, included in the ticket price, for the use of airport facilities.

Natural Outdoor

Environments or spaces not created or significantly altered by humans, allowing for interaction with nature.

Volunteering

The act of offering services for free in order to help people or contribute to a community.