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The most commonly used metrics of risk are: standard deviation (variance and coefficient of variation are also based on st. deviation) and beta. Explain and

The most commonly used metrics of risk are: standard deviation (variance and coefficient of variation are also based on st. deviation) and beta. Explain and compare these metrics. Give couple examples when financial manager should be using each of these risk metrics. Also, explain the purpose of diversification: what type of risks diversification helps to reduce, which risks cannot be eliminated by diversification.

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