The Standard Deviation Is a Better Measure of Risk Than

question 45

True/False

The standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities being compared differ significantly.

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Definitions:

Modest Correlation

A statistical relationship between two variables that is present but not strong, indicating a limited degree of association.

Concerned Citizen

An individual who shows care or worry about issues affecting their community or society at large.

Trustworthiness

The quality or attribute of being reliable, dependable, and deserving of trust.

Credibility

The quality of being trusted and believed in, often considered in the context of individuals, organizations, or information.