Investor is considering using semi-variance instead of variance. a) State the argument in favour of using semi-variance

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Investor is considering using semi-variance instead of variance.

a) State the argument in favour of using semi-variance instead of variance. (5 marks)

b) Under what circumstance would the use of semi-variance not make any difference? (2 marks)

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: May 05, 2023 06:15 AM

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Investor is considering using semi-variance instead of variance. a) State the argument in favour of using semi-variance

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Expert Answer:

a The argument in favor of using semivariance instead of variance is that it only considers the down... View the full answer

Fundamentals of corporate finance

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