Because of Differences in the Expected Returns on Different Investments

question 16

True/False

Because of differences in the expected returns on 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.

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Definitions:

Economic Inequality

The unequal distribution of income and opportunity between different groups in society.

Appearance

The way that someone or something looks to others, often emphasizing physical aspects such as clothing, grooming, and body shape.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Occupation

A person's profession or main source of income, often reflecting their skills, training, and interests.