Why Is Beta Thought to Be a More Relevant Measure

question 80

Essay

Why is beta thought to be a more relevant measure of risk than standard deviation for a diversified investor?

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Definitions:

Root Cause

The fundamental reason for the occurrence of a problem, which if addressed, prevents recurrence.

Work Environment

The physical and social conditions of a workplace that affect the well-being and productivity of employees, including office layout, culture, and policies.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that can affect a person’s employment, interfere with work performance, or create a hostile work environment.

Hostile Work Environment

A workplace where the behavior of a coworker or superior creates an intimidating, hostile, or offensive atmosphere.