Total Risk Is Measured by ________ and Systematic Risk Is

question 84

Multiple Choice

Total risk is measured by ________ and systematic risk is measured by ________.

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

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Definitions:

Equipment Cost

The total amount spent to acquire, install, and prepare equipment for its intended use, including purchase price and associated expenses.

Periodic Depreciation

The allocation of the cost of a tangible asset over its useful life in a periodic manner, typically done for accounting and tax purposes.

Plant Assets

Long-term tangible assets that are used in the production of goods or services, such as buildings, machinery, and equipment.

Salvage Value

The estimated residual value of an asset at the end of its useful life, reflecting what it could be sold for or scrapped.