The Standard Deviation Is a Better Measure of Risk Than

question 6

True/False

The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly.

---

Definitions:

Motor Oil

A lubricant used in internal combustion engines to reduce wear on moving parts, clean, and cool the engine.

Gasoline

A volatile fuel used primarily in internal combustion engines.

Revealed Preference

A theory in economics that assumes the preferences of consumers can be revealed by their purchasing habits.

Prices

The amounts of money expected, required, or given in payment for goods or services.