Asked by Ashley Pillatos on Jul 12, 2024
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.
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.
Learning Objectives
- Elucidate the function of standard deviation in evaluating the overall risk associated with securities and investment portfolios.
Related questions
Which One of the Following Statements Is Correct Concerning the ...
Donna Is Considering the Option of Becoming a Co-Owner in ...
Assume That an Investor Invests in One Risky and One ...
The Standard Deviation of a Two-Asset Portfolio (With a Risky ...
The Larger the Variance, the More the Actual Returns Tend ...