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There are serious flaws with crime statistics.These involve:
Beta
An indicator of how much a stock's price fluctuates compared to the entire market, showing the level of risk associated with its returns.
Standard Deviation
A statistical measure that quantifies the amount of variation or dispersion of a set of values, commonly used in finance to assess the risk associated with a particular investment.
Correlation
Correlation is a statistical measure that describes the extent to which two variables change together, indicating the strength and direction of their relationship.
Market Risk Premium
The additional return investors expect for holding a risky market portfolio instead of risk-free assets, reflecting the extra risk.
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