Is a Measure of Total Risk, Whereas Is a Measure

question 7

Multiple Choice

is a measure of total risk, whereas is a measure of systematic risk.

• A)Standard deviation; beta
• B)Beta; standard deviation
• C)Standard deviation; variance
• D)Coefficient of variation; standard deviation
• E)None of the above is correct.

---

Definitions:

Alpha Forecasts

Estimates or predictions of the active return on an investment, indicating how a security or portfolio is expected to perform relative to a benchmark index.

Forecast Imprecision

The degree of uncertainty or potential error in predicting future values or outcomes, often associated with economic, financial, or statistical forecasts.

Active Portfolio

An investment portfolio that is managed with the goal of outperforming a benchmark, often through frequent trading and strategy adjustments.

Market Timing

An investment strategy attempting to predict future market movements to buy low and sell high, often considered highly speculative.