Asked by
ashlee Espinosa
on Nov 16, 2024Verified
Because the statistic called the standard deviation measures the volatility of a variable, it is used to measure the return of a portfolio.
Standard Deviation
A statistical measure that quantifies the amount of variation or dispersion of a set of values from their average.
Volatility
Measures the degree of variation of a trading price series over time, typically used in financial contexts to indicate the risk of an investment.
- Comprehend the concept of diversification and its role in mitigating risk within investment portfolios.
Verified Answer
SB
Learning Objectives
- Comprehend the concept of diversification and its role in mitigating risk within investment portfolios.