The Standard Deviation of a Security Measures The

question 35

Multiple Choice

The standard deviation of a security measures the:

• A) systematic risk of the security.
• B) unsystematic risk of the security.
• C) total risk of the security.
• D) risk per unit of return for the security.

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Definitions:

Standard Deviation

A statistical measure that represents the amount of variation or dispersion from the average in a set of data.

Assignable Cause

A specific factor or reason for variation in a process that can be identified and managed.

Particular Event

A specific occurrence or happening relevant to the context in which it is mentioned.

Variation

The act or process of altering or deviating from the standard or expected form, outcome, or specification.