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:

Rush Orders

Orders that are given priority over others, typically requiring faster production and delivery times at potentially higher costs.

Uneconomical Lot-Sizes

Lot-sizes that do not maximize efficiency or cost-effectiveness in production or ordering.

Service Company

A business entity that provides intangible products or services to customers rather than physical goods.

Fixed And Variable Cost

Fixed and Variable Cost are two types of costs incurred by businesses; fixed costs do not change with the level of production or service, while variable costs vary directly with the level of production or service.