Standard Deviation Measures _____ Risk

question 75

Multiple Choice

Standard deviation measures _____ risk.

• A)total
• B)nondiversifiable
• C)unsystematic
• D)systematic
• E)economic

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.

Federal Reserve

The central banking system of the United States, responsible for implementing the country's monetary policy and regulating its financial institutions.

Liquidity

A measure of the ease with which an asset can be converted into money without a significant loss of value.

Significant Loss

A substantial reduction in the value of an asset or a large financial deficit experienced by an individual or entity.