What statistical concept do many portfolio managers use to represent risk when considering investment performance?
A)The standard deviation of returns
B)The difference,or "spread," between the highest value over the holding period and the lowest value over the holding period
C)The geometric mean return
D)The coefficient of variation

Question

Quizplus · Accepted Answer

Portfolio managers often use the standard deviation of returns to represent risk when considering investment performance. The standard deviation measures how much the returns of an investment deviate from their average, which is a common measure of risk.

What Statistical Concept Do Many Portfolio Managers Use to Represent