8. Which of the following is not used to determine stand-alone risk? A. Coefficient of variation...
8. Which of the following is not used to determine stand-alone risk? A. Coefficient of variation (CV) B. Standard deviation C. Historical data D. Capital asset pricing model (CAPM)
Homework Answers
Answer
Following are mostly used to find out Risk of company/orginisation/entity
1. coefficient of variation
2. standard deviation
3. historical data
But the CAPM used to calculating of Return and risk.
So, final answer 'D' CAPM
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8. Which of the following is not used to determine stand-alone
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8.2
The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the -Select- divided by the expected return. The coefficient of variation shows the risk per unit of return, so it provides a more meaningful risk measure when the expected returns on two alternatives are not -Select- .. The Sharpe ratio compares the asset's realized excess return to its -Select- over a...
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8.2
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