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Basic Question 4 of 11
The limitations of standard deviation include ______.
II. It may not exist for return distributions with fat tails.
III. It includes diversifiable risk.
I. It may not be an appropriate measure of risk for non-normal distributions.
II. It may not exist for return distributions with fat tails.
III. It includes diversifiable risk.
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | delta is limited to capture only small changes and gamma for large changes. |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods
CFA® 2025 Level I Curriculum, Volume 6, Module 6.