Standard Deviation and Beta Both Measure Risk,but They Are Different

question 13

Multiple Choice

Standard deviation and beta both measure risk,but they are different in that

• A)beta measures both systematic and unsystematic risk.
• B)beta measures only systematic risk while standard deviation is a measure of total risk.
• C)beta measures only unsystematic risk while standard deviation is a measure of total risk.
• D)beta measures both systematic and unsystematic risk while standard deviation measures only systematic risk.
• E)beta measures total risk while standard deviation measures only nonsystematic risk.

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Definitions:

Output Control

A management process where actual output is measured, compared to desired output, and adjustments are made as necessary to achieve objectives.

Profitability

The ability of a business or activity to generate a profit or financial gain compared to its costs and investments.

Regional Managers

Individuals responsible for overseeing operations and implementing strategies across various locations within a specific geographic region.

Normative Control

A management approach that shapes employee behavior through organizational norms and values rather than through explicit rules.