If an Individual Owns Only One Security the Most Appropriate

question 29

Multiple Choice

If an individual owns only one security the most appropriate measure of risk is:

• A) Standard deviation
• B) Correlation
• C) Beta
• D) Covariance
• E) All of the above are equally important

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Definitions:

Accounts Payable

the amount a company owes to suppliers or creditors for goods and services bought on credit.

Inventory Decrease

A reduction in the quantity or value of inventory held by a business over a specific period.

Cash Payments

Transactions involving the transfer of cash from one entity to another, usually as exchanges for goods, services, or to settle debts.

Purchases

Transactions involving the buying of goods or services for the purpose of resale or direct use in production or operations.