Standard Deviation Essay

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Standard Deviation Abstracts Kelly Bonilla, Kendra Meza, Ben Richards, Ursula Rowland, Vicky Tolbert QRB 501 November 3, 2014 Victor Nunez Standard Deviation Abstracts Risk: An uncommon deviation I selected the article entitled, "Risk: An Uncommon Deviation" for this week's team assignment. This purpose of this study was to determine that an investment's risk cannot solely be measured by calculating the standard deviation of an investments returns. The methodology consists of modified behavioral approaches used to assist with calculating standard deviation of returns. Most educated analysts are pattern driven and relay on traditional business models causing them to lack applying common sense when determining the standard deviation of an investments return. Analyzing averages and statistics are not actuals. If a professional makes a high impacting decision based solely on calculated standard deviations, the results could be catastrophic and yield a financial deficits. The hypothesis compares 5-year analysts behavioral statics verses 10-year analysts behavioral statics. The 5-year analysts had a tendency to make a critical decision based on standard deviations solely that did not reveal calculated investment risks associated with making those decisions. While the 10-year analysts used the standard deviations to sparks a deeper sense to gather more facts before making critical decisions. It is my suggesting that analysts should be challenged to evaluate standard deviation calculations to reveal investment risks to enhance their critical decision making (Donald, 2006). Inverse Portfolio Problem with Mean-Deviation Model The article chosen for this week’s team assignment is Inverse Portfolio Problem with Mean-Deviation Model. This purpose of this study is to understand individual risk preferences related to investment decision-making, finance, and economics. The

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