downside risk

CFA Level I
#1

with respect to measurement of downside risk associated with the returns from an investment , that investment’s mean return is least likely to be used to calculated the a semivariance b semideviation c standard deviation d target semivariance

#2

C. because of the key phrase “downside risk”, just a guess…

#3

freewin3k Wrote: ------------------------------------------------------- > with respect to measurement of downside risk > associated with the returns from an investment , > that investment’s mean return is least likely to > be used to calculated the > a semivariance > b semideviation > c standard deviation > d target semivariance A or B measure downside risk

#4

I would guess D, because I don’t think that you should use the investment’s mean return to find the target semivariance. The target semivariance should be independent of the investment you are looking at. I would say that you use the standard deviation to find the semideviation and semivariance.

#5

rlange Wrote: ------------------------------------------------------- > I would guess D, because I don’t think that you > should use the investment’s mean return to find > the target semivariance. The target semivariance > should be independent of the investment you are > looking at. > > I would say that you use the standard deviation to > find the semideviation and semivariance. that could be true, good point. tricky one