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:

Value Proposition

A statement of the fundamental benefits of the products or services being offered in the marketplace.

Fundamental Benefits

Core advantages or essential positives that stem from a particular action, policy, or product.

Changing Demographics

The varying characteristics of populations over time, such as age, race, and gender, which can impact social, economic, and political structures.

External Environment

The external factors, forces, situations, and events outside an organization that can affect its strategies and performance.