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

question 105

True/False

Because of differences in the expected returns of different investments,the standard deviation is not always an adequate measure of risk.However,the coefficient of variation adjusts for differences in expected returns and thus allows investors to make better comparisons of investments' stand-alone risk.

Understand the concept and properties of continuous and discrete random variables.

Comprehend the computation and implications of expected value and variance in probability distributions.

Distinguish between continuous and discrete probability distributions.

Define and understand the characteristics of a Poisson distribution.

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Definitions:

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, using less fuel than conventional vehicles.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved.

Minimum Wage

A legally established lower limit on the wage that employers can pay their workers.

Unemployment

The situation of someone of working age and willing to work being unable to find employment.