If Standard Deviation Is Used to Measure the Risk of Stocks

question 98

True/False

If standard deviation is used to measure the risk of stocks, one problem that arises is the inability to tell which stock is riskier by looking at the standard deviation alone.

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Definitions:

Family Therapist

A mental health professional who specializes in analyzing and treating family dynamics and issues within the context of family relationships.

Psychoanalyst

A psychoanalyst is a professional who practices psychoanalysis, exploring unconscious motivations and conflicts to treat mental disorders.

Gestalt Therapist

A psychotherapist who focuses on the individual's experience in the present moment, the therapist-patient relationship, the environmental and social contexts of a person's life, and the self-regulating adjustments people make as a result of their overall situation.

Behavior Therapies

A range of therapies focused on modifying harmful behaviors through conditioning and other learning techniques.