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:

X-ray

a form of electromagnetic radiation used in medical imaging to generate images of structures within the body, particularly bones.

Atrioventricular

Pertaining to the atria and ventricles of the heart, or the connection or coordination between them.

Mitral Stenosis

A narrowing of the mitral valve opening in the heart, restricting blood flow from the left atrium to the left ventricle.

BP

Blood Pressure, the pressure of circulating blood against the walls of blood vessels, often measured as an indicator of heart health.