Now i’m studying CFA level 1 by myself, but i wonder why “Standard deviation always refer to RISK and Average value(mean) always refer to return”. Someone else can help me to explain it? Thanks alot.
Hard to tell without a concrete example. But I think you’ve misread - typically, you’re talking about both the mean(average) and standard deviation of RETURNS. I.e. it’s not just the mean that refers to return - it’s both.