Since Total Risk Is Greater Than Systematic Risk, Should Standard

question 70

Essay

Since total risk is greater than systematic risk, should standard deviation be always greater than beta?

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Definitions:

Hans Selye

A pioneering Hungarian-Canadian endocrinologist known for his research on stress and the development of the General Adaptation Syndrome model.

Reactions

the responses or behaviors that result from some sort of stimulus or change in the environment.

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, comprising of three stages: alarm, resistance, and exhaustion.

Physiological Exhaustion

This refers to a state of extreme physical or mental fatigue usually resulting from prolonged stress or activity, leading to a diminished capacity for work or other activities.