A Stock's Standard Deviation Determines How the Stock Affects the Riskiness

question 24

True/False

A stock's standard deviation determines how the stock affects the riskiness of a diversified portfolio, therefore it is a better measure of a stock's relevant risk than is the beta coefficient, which measures total, or stand-alone, risk.

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Definitions:

Behavioral Theorist

A researcher or theorist who focuses on how observable behavior is learned and shaped through interaction with the environment.

Skinner's Ideas

Refers to the concepts and theories developed by B.F. Skinner, particularly those related to behaviorism and operant conditioning.

Happiness

A state of well-being and contentment characterized by positive emotions and life satisfaction.

Children

Individuals in the early stages of development, typically considered to be from birth to puberty.