Standard Deviation and Beta Both Measure Risk, but They Are

question 51

Multiple Choice

Standard deviation and beta both measure risk, but they are different in that beta measures

• A) both systematic and unsystematic risk.
• B) only systematic risk, while standard deviation is a measure of total risk.
• C) only unsystematic risk, while standard deviation is a measure of total risk.
• D) both systematic and unsystematic risk, while standard deviation measures only systematic risk.
• E) total risk, while standard deviation measures only nonsystematic risk.

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Definitions:

Appellate Courts

Courts that have the authority to review decisions made by lower courts and determine if legal errors were made.

In Rem Jurisdiction

Jurisdiction over a particular piece of property, regardless of where the property owner resides.

Personam Jurisdiction

The legal authority for a court to make decisions affecting a particular person's rights or obligations.

Sui Iuris

A Latin term meaning "of one's own right," referring to individuals who possess full legal capacity to act on their own behalf.