CFA Practice Question

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CFA Practice Question

The limitations of standard deviation include ______.

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.
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