Asked by Ashley Pillatos on Jul 12, 2024

verifed

Verified

Standard deviation measures the _____ risk of a security.

A) unique
B) asset-specific
C) systematic
D) total
E) diversifiable

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in statistics to quantify the amount of variation or dispersion of a dataset.

Total Risk

The complete spectrum of all types of risk that an investment or project might face, including both systematic and unsystematic risks.

  • Elucidate the function of standard deviation in evaluating the overall risk associated with securities and investment portfolios.
verifed

Verified Answer

TB
Travis BàndJul 18, 2024
Final Answer :
D
Explanation :
Standard deviation measures the total risk of a security, encompassing both systematic and unsystematic risks.