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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. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe methods for measuring and modifying risk exposures and factors to consider in choosing among the methods
CFA® 2024 Level I Curriculum, Volume 6, Module 6.