____ Is the Appropriate Measure for Stand-Alone Risk and ____

question 40

Multiple Choice

____ is the appropriate measure for stand-alone risk and ____ is the appropriate measure of risk when adding an asset to a diversified portfolio.

• A) beta;variance
• B) beta;standard deviation
• C) standard deviation;beta
• D) standard deviation;variance

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Definitions:

Concrete Operational Thought

A stage in Piaget's theory of cognitive development during which children gain the ability to think logically about concrete events and understand the concept of conservation.

Conceptual Knowledge

The understanding of principles and relations among objects, facts, and ideas within a certain domain.

Declarative Knowledge

Knowledge that can be consciously recalled, such as facts and information.

Vegetation

Plant life or plant communities collectively, commonly referred to in terms of the physical environment they occupy.