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The higher the possibility of a deviation from certainty, the greater the perceived risk of any data. Measures of risk exploit this idea. Possible measures
The higher the possibility of a deviation from certainty, the greater the perceived risk of any data. Measures of risk exploit this idea. Possible measures of risk of these data are: O all listed measures can measure risk the "range" of the values of the data O the average of the absolute values of the differences in the data from their expected value the standard deviation Asset A has an expected rate of return of 10% with a standard deviation of 18%. Asset B has an expected rate of return of 13% and a standard deviation of 25%. As a risk averse investor, which asset would you hold if you only wish to hold one of the two assets? Calculate the coefficient of variation of the less risky asset
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