Explain why the standard deviation represents risk
What will be an ideal response?
Standard deviation reflects the volatility of (future) losses and thus it tells the risk manager how much worse future losses can be compared to the expected future loss. The expected loss is an estimate, but its standard deviation shows the volatility associated with this estimate. The more volatility, thus the higher the standard deviation, the less accurate the estimate thus the more risk.
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________, once heavily dependent on cocoa, began an industrialization program to protect itself from fluctuations in cocoa prices
A) Austria B) Ghana C) Brazil D) The Hershey Company
Based on the information in Table 1, what is Dorian's projected EBIT for March 2014?
A) ($10,000) B) ($30,000) C) $70,000 D) None of the above