Final answer:
Semivariance is the risk measurement that is less common compared to covariance, range of returns, standard deviation, and variance. These risk measurements help in understanding the volatility and risks associated with financial assets and are crucial for making investment decisions. Therefore, the correct option is E.
Step-by-step explanation:
All of the following are common risk measurements except semivariance. Common risk measurements in finance and investment include covariance, range of returns, standard deviation, and variance. Each of these measures helps investors to understand the volatility associated with an asset's returns and assists in portfolio optimization.
Semivariance is a less common risk measurement that focuses on the downside variation of an asset's returns. Unlike variance or standard deviation, which take into account both upside and downside volatility, semivariance only considers the variations of returns that fall below the mean, hence, looking at the negative performance of an investment.
Standard deviation is a commonly used measure of risk that indicates how much the return on an asset is deviating from the expected normal, or average return. The standard deviation is used to gauge the amount of variability or volatility in a set of data points. Range of returns provides the difference between the highest and lowest values, indicating the total spread across which asset returns have fluctuated over a specific period.
Covariance and variance are also important risk measures. Covariance assesses how changes in one variable are associated with changes in another variable, often reflecting co-movement between two investment assets. Variance, on the other hand, measures the spread of a dataset around its mean value and in the context of finance, reflects the volatility of an asset's returns.