The use of the semivariance turns out to result in the exact same ranking of uncertain outcomes with respect to risk as the use of the variance when the:
A)distribution is asymmetric.
B)coefficient of variation is introduced.
C)distribution is symmetric.
D)range of distributions is equal.
E)standard deviation and mean of distributions is equal.

Question

Quizplus · Accepted Answer

The use of semivariance results in the same ranking of uncertain outcomes as the use of variance when the distribution is symmetric. This is because semivariance only considers the values that fall below the mean, and in a symmetric distribution, the shape and spread of values below the mean mirror those above the mean, making the semivariance and variance measures consistent in terms of risk assessment.

The Use of the Semivariance Turns Out to Result in the Exact