Total Risk Is Measured by ________ and Systematic Risk Is

question 84

Multiple Choice

Total risk is measured by ________ and systematic risk is measured by ________.

• A) beta; alpha
• B) beta; standard deviation
• C) alpha; beta
• D) standard deviation; beta
• E) standard deviation; variance

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Definitions:

Trading Securities

Trading securities are a form of investments that a company plans to buy and sell over a short period of time with the intention of profiting from the market movements.

Realized Gain

The profit made from the sale of an asset, recognized when the asset is actually sold and the transaction is complete.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single economic entity.

Voting Shares

Shares of a corporation's stock that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.