alleryStart learning →Economists criticised standard deviation as a risk measure because it
Aignores all historical rates
Btreats gains and losses alike
Ccannot be computed for currencies
Duses only the median value
Answer & Solution
Correct answer: B. treats gains and losses alike
Squaring deviations treats gains and losses alike, so alternatives such as semivariance, which looks at downside only, were proposed.
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