Which Is the Best Measure of Risk for a Single

question 42

Multiple Choice

Which is the best measure of risk for a single asset held in isolation,and which is the best measure for an asset held in a diversified portfolio?

• A) Variance;correlation coefficient.
• B) Standard deviation;correlation coefficient.
• C) Beta;variance.
• D) Coefficient of variation;beta.
• E) Beta;beta.

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Definitions:

"Me"

A term that refers to the self as perceived from an internal perspective, including one's own thoughts, feelings, and consciousness.

Authenticity

The quality of being genuine or true to one's own personality, spirit, or character, despite external pressures or influences.

True Self

One's authentic, innermost identity as opposed to social facades or roles played.

Daily Life

Refers to the routines, habits, and regular activities that an individual engages in on a day-to-day basis.