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.

---

Definitions:

Events

Occurrences or happenings that are significant in some way to the environment or individuals.

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

State-dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.

Encoding Strategies

Techniques used to process and store information in memory more effectively.