Beta Is a Better Risk Measure Than Standard Deviation When

question 82

Multiple Choice

Beta is a better risk measure than standard deviation when the firm:

• A) is effectively diversified.
• B) focused on total risk.
• C) uses the CAPM in its cost of capital calculation.
• D) has a beta that is close to 1.0.

---

Definitions:

Ilium

The largest bone of the pelvis, forming the uppermost part.

Ischium

One of the three bones that make up the pelvis, forming the lower and back part of the hip bone.

Osteoblasts

Cells responsible for bone formation.

Bone Growth

A physiological process resulting in the increase in size of bones, involving the production of new bone tissue through ossification or calcification.