Is Volatility a Reasonable Measure of Risk When Evaluating the Investment

question 29

Essay

Is volatility a reasonable measure of risk when evaluating the investment in a single stock?

---

Definitions:

Federal Funds

Central bank reserves loaned by one bank to another, typically overnight, to meet reserve requirements.

Central Hudson

A legal test used by United States courts to determine the constitutionality of restrictions on commercial speech.

Commercial Speech

Speech or communication (including advertising) made by businesses that is protected under the First Amendment but can be regulated by the government.

Public Service Commission

A governmental body responsible for regulating the rates and services of public utilities.