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:

Brain Development

The process of growth and maturation of the brain, which includes changes in structure, function, and complexity over time.

External Stimuli

External forces or conditions that influence behavior, perception, or physiological responses.

Formal Operations

The final stage in Piaget's theory of cognitive development, marked by the ability to think abstractly and reason hypothetically.

Abstract Thinking

The cognitive ability to understand concepts that are not grounded in physical reality, and to use general principles to solve problems and generate new ideas.