Series 66: Other Important Risk Concepts

Taken from our Series 66 Online Guide Other Important Risk Concepts

The exam may ask about a couple of other concepts used to explain risk and volatility. While you will not be asked to calculate any of these amounts, you should know how they can be incorporated into portfolio management decisions.

Standard deviation (SD) is a commonly used measure that helps explain how much a security has historically varied from its average return over a period of time. This number ca

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