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The auditor discovers that the likely rate of deviation in a population is increasing. This affects:
Monthly Excess Returns
Returns from an investment over and above the risk-free rate of return on a monthly basis, used to evaluate investment performance.
Nondiversified Investor
An investor who concentrates their investment in a limited selection of assets, increasing risk compared to diversified strategies.
Expected Excess Return
The return expected on an investment over and above the risk-free rate, taking into account both the risk involved and the time value of money.
Beta
A measure of a stock's volatility in relation to the overall market; it indicates the risk associated with a particular equity in comparison to the market as a whole.
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