____ 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:

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing important economic data, including unemployment, labor productivity, and price indexes.

Demand Fall

A decrease in the quantity of a product or service that consumers are willing and able to purchase at various prices, typically resulting in lower prices.

Labor-saving Technological Change

It refers to innovations or advancements in technology that reduce the amount of labor required to produce goods or services, often leading to increased productivity.

Telephone Operators

Individuals responsible for assisting customers in making telephone connections, including placing and connecting calls or providing information.