Distinguish among the following risk measurement terms: beta, r-squared, co variance, and correlation coefficient
DISCUSSION:
1. Distinguish among the following risk measurement terms: beta, r-squared, covariance, and correlation coefficient (pp. 286-289)
2. Define the nature of probability distributions and the two types associated with them (pp. 281-282)
3. Discuss the importance of an investment advisor being able to explain to his or her client why a mutual fund characterized by a very low standard deviation could be riskier than a similar type fund with a higher absolute number (pp. 281-282)
4. Discuss the problem raised when calculating standard deviation using probability distributions (pp. 282-285)
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