teamzhang

Regarding the question in 7th post:

There are primarily two means to measure risk for a stock or a portfolio: absolute and relative measurement. The overall risk is referring to absolute risk, which is measured by standard deviation.
Higher overall risk <==> higher volatility <==> higher standard deviation, and vice versa.

Frequently, risks are measured agains the whole market, by beta. Larger beta implies higher market/systematic risk. However, higher standard deviation is not equivalent to higher beta. Some stocks have large volatility, but small beta. Google is an example, because it often moves against the market. Look closely at the x-axises of CML and SML graphs.

As to the errors in Schweser Notes, I just found that they publish errors detected and reported on their website, sorted by books:

http://www.schweser.com/news/news_updates.php?type=schweser

[此贴子已经被作者于2007-9-7 13:25:10编辑过]

梦续蓝桥

QUOTE:

以下是引用水模样在2007-8-31 20:40:00的发言：

还有一个我没懂，请教

book4,p105的9题的解释，最后说：the overall risk of the portfolio should decrease, resulting in a lower standard deviation.

Does that mean low risk, low SD; high risk, high SD?

[em09]

sd result in risk,so we can only say that the higher sd, the higt risk.

epath

厚道，同学，做人要厚道