Choose the Correct Answer for the Following: (1)Which Is the Best

question 54

Multiple Choice

Choose the correct answer for the following: (1) Which is the best measure of risk for choosing an asset which is to be held in isolation? (2) Which is the best measure for choosing an asset to be held as part of a diversified portfolio?

• A) Variance;correlation coefficient.
• B) Standard deviation;correlation coefficient.
• C) Beta;variance.
• D) Coefficient of variation;beta.
• E) Beta;beta.

---

Definitions:

Reference Group

A group to which an individual compares themselves, influencing their attitudes and behavior.

30 Percent

A fraction or proportion representing thirty parts out of a hundred, often used in statistical or descriptive analyses.

70th Percentile

A value below which 70 percent of the data falls, often used in statistical analysis to measure performance.

Submental Lymph Nodes

Lymph nodes located beneath the chin (submental area), part of the body's immune system, they can become enlarged due to infections or other conditions.