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RISK
MEASUREMENTS OF RISK ,[object Object],[object Object],[object Object]
STANDARD DEVIATION   ,[object Object],[object Object]
STANDARD DEVIATION The graph below shows different types of SD with different spreads.  The blue curve has the widest spread and, therefore the highest SD and the widest range of possible outcomes. The red curve, however has the lowest SD and fewer possible outcomes. Risk avers investors prefer lower SD as it is easier to anticipate the possible outcomes.  The higher the SD, the higher the risk
COEFFICIENT OF VARIATION   ,[object Object],[object Object]
COEFFICIENT OF VARIATION ,[object Object]
BETA ,[object Object]
BETA ,[object Object]
BETA ,[object Object]

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Risk

  • 2.
  • 3.
  • 4. STANDARD DEVIATION The graph below shows different types of SD with different spreads. The blue curve has the widest spread and, therefore the highest SD and the widest range of possible outcomes. The red curve, however has the lowest SD and fewer possible outcomes. Risk avers investors prefer lower SD as it is easier to anticipate the possible outcomes. The higher the SD, the higher the risk
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.