Recommendations & Strategies第 69 / 100 题
When comparing two portfolios with the same return, the one with the LOWER standard deviation is generally considered:
a.Riskier and less desirable
b.Guaranteed to outperform
c.Identical in every respect
d.Less volatile and thus more attractive on a risk-adjusted basis
解析
Standard deviation measures total volatility; for equal returns, the portfolio with lower standard deviation delivers those returns with less risk. Risk-averse investors prefer the less volatile portfolio. This underlies risk-adjusted performance comparisons.
免费刷完整 100 道题库 — 无需注册。
同考点相关题目
- Duration is used to estimate a bond's:
- A client wants growth but panics and sells during every market decline. This behavioral tendency is best described as:
- A 529 plan is primarily used for:
- An investor is subject to the alternative minimum tax and holds private-activity municipal bonds. The adviser should note that interest on certain private-activity bonds may be:
- A client nearing retirement wants to gradually reduce portfolio risk. A glide-path approach would:
- A high-net-worth client asks how to reduce estate taxes through lifetime giving. The adviser should mention: