Which of the following statements is incorrect?
A) The range is a measure of dispersion.
B) The standard deviation is a more common measure of risk than range.
C) The range is calculated as the difference between the maximum and minimum values.
D) The range is a good measure of risk because it captures the variability of returns between the maximum and minimum values.

Question

Quizplus · Accepted Answer

The range, while it does measure the spread between the maximum and minimum values, does not capture all the variability or the distribution of values between these two points, making it a less comprehensive measure of risk compared to other metrics like standard deviation.

Which of the Following Statements Is Incorrect