Because of Differences in the Expected Returns on Different Investments

question 16

True/False

Because of differences in the expected returns on different investments, the standard deviation is not always an adequate measure of risk.However, the coefficient of variation adjusts for differences in expected returns and thus allows investors to make better comparisons of investments' stand-alone risk.

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Definitions:

Collect Like Terms

The process of simplifying an algebraic expression by combining terms that have the same variables.

Operation Indicated

A mathematical operation suggested by a problem or equation, such as addition, subtraction, multiplication, or division.

Collect Like Terms

In algebra, the process of combining terms that have the same variable parts into a single term.

Operation Indicated

The action or set of actions specified by symbols or terms in a mathematical or technical context.