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:

Iris

The colored part of the eye that controls the size of the pupil and the amount of light that enters the eye.

Muscles

Tissues in the body that have the ability to contract, enabling movement of the body and maintenance of posture.

Complexity

A characteristic of systems, models, or problems that have multiple interconnected parts and variables, which make understanding or solving them challenging.

Perception

The process by which organisms interpret and organize sensory information to produce a meaningful experience of the world.