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?

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Definitions:

Parcel of Land

A specific piece of land, defined by boundaries, that is owned or meant to be owned as a unit.

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed over a specific period of time.

Fee Simple Absolute

A type of freehold ownership where the owner has the greatest possible aggregation of rights, privileges, and power over a piece of property.

Ownership Interest

This denotes the rights and claims an individual or entity has over a property or investment.