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:

Consumer Electronics

Electronic devices intended for everyday use by individuals, such as smartphones, televisions, and laptops.

Prestige Products

Items that are perceived as luxurious and of high quality, often associated with social status.

Shopping Products

Goods that consumers purchase after comparing quality, price, and style from several sellers, implying a more deliberate decision-making and selection process.

Unsought Product

A type of product that consumers typically do not think about buying or do not know exists until they see it or need it.