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:

Physical Health

The overall condition of a person's body, including freedom from illness or injury and the ability to perform daily tasks without physical limitation.

Eysenck's Factors

A personality model proposing three dimensions of human personality: extraversion-introversion, neuroticism-stability, and psychoticism-superego.

Psychoticism

A personality pattern typified by aggressiveness and interpersonal hostility, related to the liability to have psychotic thinking or experiences.

Agreeableness

A personality trait characterized by attributes such as trust, altruism, kindness, affection, and other prosocial behaviors.