A Measure of the Riskiness of an Asset Held in Isolation

question 87

Multiple Choice

A measure of the riskiness of an asset held in isolation is ________.

• A) beta
• B) standard deviation
• C) covariance
• D) alpha

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Definitions:

Posting

the process of transferring journal entries to respective accounts in the ledger.

Ledger

A book or electronic record used to record all of a company's financial transactions in chronological order.

T-account

A graphical representation used in accounting to illustrate the effects of transactions on account balances, with debits on the left and credits on the right.

Credit

A financial term denoting the ability to obtain goods or services before payment, based on the trust that payment will be made in the future.