What is the limitation in using variance as measure of risk


1. What is the limitation in using variance as measure of risk? Explain this point with an illustration. Derive the capital asset pricing model and show that it provides a better measure in valuing a risky asset.

For start-up business how a proper market research will ensure entrepreneurial success?

2. According to the text, which of the following types of loan has the highest interest rate?

New automobile loan

Used automobile loan

Personal loan

Credit card loan

All of these have the same interest rate

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Financial Management: What is the limitation in using variance as measure of risk
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