Question: What are the two reasons using Standard Deviation to quantify a portfolios risk can be worse?

What are the two reasons using Standard Deviation to quantify a portfolios risk can be worse?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

1. You bought a ZipCo bond on 1/15/20. Its coupon rate is 6% paid semiannually on Jan 1 and July 1. How much accrued interest did you pay the seller? 2. N-Corp's convertible bond has a conversion...

Q:

Show all your work and calculations. 1.You bought a ZipCo bond on 1/15/20. Its coupon rate is 6% paid semiannually on Jan 1 and July 1. How much accrued interest did you pay the seller? 2.N-Corp's...

Q:

Write Clearly. Number your answers. Show all your work and calculations. Email back to me in a Word Doc by 9AM. 7 points per question. 1. Name 4 things a portfolio manager should do to be sure a...

Q:

Your portfolio has 2 Standard Deviations of +/- 30 percentage points from the average ATR of +10%. Given this data, you have a ____% Confidence Level losses next year will not be greater than ____%....

Q:

16. What are the two main reasons using Standard Deviation to quantify a portfolio's risk can be misleading or worse? 17. Your portfolio has 2 Standard Deviations of +/- 36 percentage points from the...

Q:

What are the two main reasons using Standard Deviation to quantify a portfolios risk can be misleading or worse?

Q:

15. Calculate the MIRR for a project where the WACC is 6%: Invest: $97 today plus $30 at the end of year 2. Returns: $33, 38, 43, and 45 to be received at the end of years 1, 2, 3, and 4...

Q:

11. What are the two main reasons using Standard Deviation to quantify a portfolios risk can be misleading or worse?

Q:

If the average range of the market's return (as measured by the S&P 500) is +/- 9% for a given period, and X-Co's Beta is 1.6, what is its expected range for that period? 5. If X-Co has a Beta of...

Q:

abigail grace has $900000 fully diversified portfolio . she subsequently inherits ABC company common stock classes, What do the data Mlcaiu 21. Convert the asset returns by decade presented in the i...

Q:

The driving force for blood flow is a(n) O osmotic O pressure O gravity volume gradient.

Q:

In a set of data analyzed by the Statistics Consulting Center at Virginia Polytechnic Institute and State University (VPI&SU), a group of subjects was asked to complete a certain task on the...

Q:

Financial ratios are a key tool for analyzing a company's performance and financial health. Why do you think ratios are important for financial analysis? Choose one type of financial ratio ( such as...

Q:

Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for...