Theres upside risk and downside risk. Standard deviation doesnt distinguish between them. Do you think the speaker
Question:
“There’s upside risk and downside risk. Standard deviation doesn’t distinguish between them.” Do you think the speaker has a fair point?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 77% (18 reviews)
If the distribution of returns is symmetric it make...View the full answer
Answered By
Shehar bano
I have collective experience of more than 7 years in education. my area of specialization includes economics, business, marketing and accounting. During my study period I remained engaged with a business school as a visiting faculty member and did a lot of business research. I am also tutoring and mentoring number of international students and professionals online for the last 7 years.
5.00+
4+ Reviews
10+ Question Solved
Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Question Posted:
Students also viewed these Corporate Finance questions
-
Do you think the standard IMF policy prescriptions of tight monetary policy and reduced government spending are always appropriate for developing nations experiencing a currency crisis? How might the...
-
Do you think the swoosh logo has become too widespread, that it is turning off many people?
-
Do you think the athletic goods industry has limited potential? Or is it still a growth industry? Your opinions, and rationale, please.
-
April Moon set a record in flight shooting. In 1981 in Utah, she sent an arrow a horizontal distance of 950 m. What was the speed of the arrow at the top of the flight if the arrow was launched at an...
-
One of the technical challenges facing the original developers of color television was the design of an image tube (camera) for the red portion of the image. From an energy point of view, discuss why...
-
Refer to Googles balance sheet in Appendix A. What accrued expenses (liabilities) does Google report at December 31, 2017? Data from Google's Google Inc. (Alphabet Inc.) CONSOLIDATED BALANCE SHEETS...
-
Reconsider the data in the previous problem. The response measurements in the two columns were collected on two different days. Fit a new model \[ y=\theta_{3} x_{2}+\theta_{1} e^{\theta_{2}...
-
Wolfe Computer is a U.S. company that manufactures portable personal computers. Many of the components for the computer are purchased abroad, and the finished product is sold in foreign countries as...
-
A. (4 pts.) Find the flux through the rectangular loop, in terms of the current I(t). B. (3 pts.) Find the current induced at t = 0 s. C. (3 pts.) Suppose the current was constant (I = 10), but the...
-
Skunk Hollow, Arkansas, is proud of their energy conservation program. They want to know how much energy they have saved. A sample of 40 houses reveals an average saving of 47.5 kilowatt hours per...
-
Each of the following statements is dangerous or misleading. Explain why. a. A long-term United States government bond is always absolutely safe. b. All investors should prefer stocks to bonds...
-
Hippique s.a., which owns a stable of racehorses, has just invested in a mysterious black stallion with great form but disputed bloodlines. Some experts in horseflesh predict the horse will win the...
-
How is overtime pay calculated for a nonexempt employee who works on fluctuating schedules and is paid a fixed salary?
-
The data in the figure has been collected to appraise the performance of four asset management firms: Return Fund 1 6,45% Fund 2 Fund 3 Fund 4 Market Index 8,96% 9,44% 5,82% 6% Beta 0,88 1,02 1,36...
-
You want to evaluate three mutual funds using the Sharpe measure for performance evaluation. The risk-free return during the sample period is 4%. The average returns, standard deviations and betas...
-
International Foods Corporation (IFC) currently processes seafood with a unit it purchased several years ago. The unit, which originally cost $500,000, currently has a book value of $270,000. IFC is...
-
11. Consider a firm that would have a cost of equity of 12 percent if it were an all-equity firm. The firm has $4 million of assets at market value. Suppose that it has $2 million of debt outstanding...
-
5. The Radio Company's last dividend was $1.75 (Do = $1.75). Its dividend growth rate is expected to be constant at 25% (.25) for 2 years, after which dividends are expected to grow at a rate of 6%...
-
In what specific ways would trade among nations complicate the effort to construct an environmentally adjusted sustainable national income accounting? Explain.
-
Tarick Toys Company manufactures video game consoles and accounts for product costs using process costing. The following information is available regarding its June inventories. The following...
-
Match Manufacturing Company specializes in producing fashion outfits. On July 31, 2016, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were...
-
a. What is the payback period on each of the following projects? b. Given that you wish to use the payback rule with a cutoff period of two years, which projects would you accept? c. If you use a...
-
Write down the equation defining a projects internal rate of return (IRR). In practice how is IRR calculated?
-
Consider a project with the following cash flows: a. How many internal rates of return does this project have? b. Which of the following numbers is the project IRR: (i) -50%; (ii) -12%; (iii) -5%;...
-
Image transcription text Introduction: The Smart Parking Management System (SPMS) project aimed to develop an efficient, automated solution for managing parking spaces in urban areas using Arduino...
-
A. Can we use human capital theory to explain "Age-Discrimination"? If so, how? B. Why do some firms prefer to hire younger workers, especially for entry level positions? C. Why do some firms...
-
Image transcription text Question 6 Not yet answered Marked out of 1.00 '1" Flag question During a mountain?biking tripr Bill and Barry are discussing the merits of having the springs and shocks used...
Study smarter with the SolutionInn App