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Because of Differences in the Expected Returns on Different Investments

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Because of differences in the expected returns on different investments, the standard deviation is not always an adequate measure of risk.However, the coefficient of variation adjusts for differences in expected returns and thus allows investors to make better comparisons of investments' stand-alone risk.


Definitions:

Assertive

A communication style characterized by confidently expressing one's opinions and needs directly and respectfully, without being aggressive.

Cooperating

The action of working together towards a common goal or benefit, often involving mutual assistance and collaboration.

Conflict Management Strategy

A systematic approach or technique adopted to handle and resolve conflicts in a constructive manner.

Concessions

Compromises made by one party to another during negotiations in order to reach an agreement or resolve a conflict.

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