Standard Deviation Measures _____ Risk

question 118

Multiple Choice

Standard deviation measures _____ risk.

• A) total
• B) nondiversifiable
• C) unsystematic
• D) systematic
• E) economic

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Definitions:

Fiduciary Duty

A legal obligation of one party to act solely in the best interest of another party, such as a trustee to the beneficiary, corporate board members to the shareholders, or agents to their principals.

Obligations

Duties or responsibilities that are legally or morally bound to an individual or entity.

Agent

An individual or entity authorized to act on behalf of another, usually in business transactions or legal matters.

Principal

The amount of money borrowed or invested, separate from interest or profit generated from it.