- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 6. Introduction to Risk Management
- Subject 4. Measuring and Modifying Risks
CFA Practice Question
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.
Correct Answer: I, II and III
User Contributed Comments 1
| User | Comment |
|---|---|
| khalifa92 | delta is limited to capture only small changes and gamma for large changes. |