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:

Securities Exchange Act Of 1934

U.S. legislation governing the secondary trading of securities (stocks, bonds, and debentures) in the financial market, aimed at regulating the exchanges and preventing fraud.

Private Transactions

Private transactions are trades or deals conducted directly between two parties without the involvement of a public exchange or the public eye.

Trading Of Securities

The buying and selling of financial instruments such as stocks, bonds, and derivatives.

Deceptive And Manipulative Practices

Actions deliberately intended to mislead or trick others, often for personal or financial gain and at the expense of others.