Question: How do we define risk in this chapter and how do we measure it? What does the coefficient of variation measure? Why is a lower

  1. How do we define risk in this chapter and how do we measure it?
  2. What does the coefficient of variation measure? Why is a lower value better for the investor?
  3. Explain what the efficient frontier is and why it is important to investors.
  4. Why is expected to return considered forward-looking?
  5. What are the challenges for practitioners to utilize expected return?

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