Investments Flashcards
1
Q
Standard deviation curve
A
2
Q
Coefficient of variation
A
Compares two assets per unit of risk
Higher the CV the riskier the asset
CV = standard deviation / avg return
3
Q
Risk adjusted return
A
Return / Risk (standard deviation)
Coefficient of Variation = Risk/ return
4
Q
Coefficient of determination
A
Also known as R squared
Calculated by squaring correlation coefficient . If greater than .70 beta can be used as measure of risk. If less than use standard deviation
