Asked by Kolby Finnie on Apr 29, 2024
Verified
Standard deviation measures _____ risk.
A) Total.
B) Nondiversifiable.
C) Unsystematic.
D) Systematic.
E) Economic.
Total Risk
The complete range of risks associated with an investment, including both systematic risk (market related) and unsystematic risk (company or industry specific).
Standard Deviation
A measure of the dispersion or variability of a set of data points from its mean, often used in finance to gauge investment risk.
- Gain insight into the nature of diversifiable versus non-diversifiable risk.
Verified Answer
KP
Keval PatelApr 29, 2024
Final Answer :
A
Explanation :
Standard deviation measures total risk, which includes both systematic (market-related) and unsystematic (company-specific) risks.
Learning Objectives
- Gain insight into the nature of diversifiable versus non-diversifiable risk.