What Statistical Concept Do Many Portfolio Managers Use to Represent

question 20

Multiple Choice

What statistical concept do many portfolio managers use to represent risk when considering investment performance?

• A)The standard deviation of returns
• B)The difference,or "spread," between the highest value over the holding period and the lowest value over the holding period
• C)The geometric mean return
• D)The coefficient of variation

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Definitions:

External Control

Occurs through direct supervision or administrative systems such as rules and procedures.

Quality Control

The operational techniques and activities used to fulfill requirements for quality in products or services, ensuring they meet certain standards of excellence.

Inventory Control

Inventory control is the supervision of supply, storage, and accessibility of items in order to ensure an adequate supply without excessive oversupply.

Management Process Control

The act of planning, monitoring, and adjusting resources and processes in an organization to achieve set goals efficiently.