Question: When measuring the volatility of an investment's returns, why is it easier to focus on standard deviation rather than variance?
Why do real returns matter more than nominal returns?
Explain why dollar returns and percentage returns can sometimes send conflicting signals when you are comparing two different investments.
How can investors hold a portfolio with a weight of more than 100 % in a particular asset?
A stock has a beta equal to 1.0. Is the standard deviation of the stock equal to the standard deviation of the market?
Explain why the efficient markets hypothesis implies that a well-run company is not necessarily a good investment.