Because of Differences in the Expected Returns of Different Securities,the

question 52

True/False

Because of differences in the expected returns of different securities,the standard deviation is not always an adequate measure of risk.However,the coefficient of variation always will allow an investor to properly compare the relative risks of any two securities.

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Definitions:

Actuarial Information

Actuarial information involves data and analysis related to assessing financial risks in insurance and finance, especially calculations concerning premiums or pension obligations.

Interest Expense

The cost incurred by an entity for borrowed funds, which is charged as an expense on the income statement over the period the funds are borrowed.

Effective Interest Method

An accounting practice used to allocate interest expense or income over the life of a financial instrument at a constant interest rate.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.