Question: True or False: The variance is measured in units squared and is NOT in the same terms as the returns, typically creating some confusion when

True or False: The variance is measured in units squared and is NOT in the same terms as the returns, typically creating some confusion when comparing. However, by taking the square root of the variance and finding the standard deviation we can find the risk of an asset or portfolio since the standard deviation is more intuitive because it is measured in the same units as the returns.

True

False

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