Choose the Correct Answer for the Following: (1)Which Is the Best

question 54

Multiple Choice

Choose the correct answer for the following: (1) Which is the best measure of risk for choosing an asset which is to be held in isolation? (2) Which is the best measure for choosing an asset to be held as part of a diversified portfolio?

• A) Variance;correlation coefficient.
• B) Standard deviation;correlation coefficient.
• C) Beta;variance.
• D) Coefficient of variation;beta.
• E) Beta;beta.

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Definitions:

Tenancy At Will

A leasehold interest that occurs when property is leased for an indefinite period of time and is terminable at the will of either landlord or tenant.

Conveys Title

The act of transferring ownership or legal title of property from one person or entity to another.

Lessee

A person or entity that holds the lease of a property, effectively the tenant in a lease agreement.

Tenancy At Will

A rental agreement that allows either the tenant or the landlord to terminate the lease at any time without cause.