In finance, we generally use a measure of dispersion such as the variance to measure the risk

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In finance, we generally use a measure of dispersion such as the variance to measure the risk of a stock’s returns. Explain why the variance may not, however, be the best measure of risk of a stock’s returns.

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Statistics For Business And Financial Economics

ISBN: 9781461458975

3rd Edition

Authors: Cheng Few Lee , John C Lee , Alice C Lee

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Question Posted: Feb 10, 2024 08:34 AM

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In finance, we generally use a measure of dispersion such as the variance to measure the risk

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Variance is indeed a common measure of risk in finance as it is used to quantify the volatility and unpredictability of a stocks returns Variance meas...View the full answer

Statistics For Business And Financial Economics

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