If Standard Deviation Is Used to Measure the Risk of Stocks

question 98

True/False

If standard deviation is used to measure the risk of stocks, one problem that arises is the inability to tell which stock is riskier by looking at the standard deviation alone.

---

Definitions:

Operation Stage

A phase in the lifecycle of a process or project where the planned activities are being executed and managed towards achieving the desired outcome.

Testing Stage

A phase in the development process where the system or components are evaluated to determine if they meet the required specifications and function correctly.

Technical Specialists

Experts on a certain type of technology, such as databases or telecommunications.

Technology Experts

Individuals with specialized knowledge in technology fields, capable of providing insights, solutions, and advancements within their area of expertise.