Which of the following measures of risk treats positive and negative deviations from the mean or expected value independently?
A)Range
B)Variance
C)Standard deviation
D)Coefficient of variation
E)Semivariance

Question

Quizplus · Accepted Answer

Semivariance is a measure of data that can be used to estimate the potential downside risk of an investment portfolio. Unlike variance and standard deviation, which consider all variability, semivariance only considers the deviations below the mean, treating positive and negative deviations independently. This makes it particularly useful for investors who are more concerned with downside risk than variability in any direction.

Which of the Following Measures of Risk Treats Positive and Negative