Part 1: State two reasons why standard deviation of the return of a stock may not be a good measure of the riskiness of that stock. Each reason should not be more than oneline.
Part 2: You have a portfolio that is well diversified. You are considering adding gold as an asset to your portfolio. What is the mostimportant factor in deciding whether you should add gold to your portfolio or not? Your answer should not be more than oneline.