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

question 45

True/False

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

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Definitions:

Soccer Balls

Spherical balls designed and used specifically for the sport of soccer.

Quantity Demanded

The aggregate quantity of a product or service that buyers are ready and capable of buying at a specific price point.

Price Elasticity of Demand

A gauge for determining how changes in price impact the amount of a good that is demanded.

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Starbucks Coffee is a global coffeehouse chain and brand originating from Seattle, Washington, known for its signature coffee drinks and emphasis on customer experience.