Portfolio Risk Is Typically Measured by ________ While the Risk

question 96

Multiple Choice

Portfolio risk is typically measured by ________ while the risk of a single investment is measured by ________.

• A) standard deviation; beta
• B) security market line; standard deviation
• C) beta; standard deviation
• D) beta; slope of the characteristic line

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Definitions:

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Dollar Spent

A unit of expenditure, often used to discuss the impact or value of spending in terms of economic activity or investment.

Marginal Utility

The increase in satisfaction or useful value obtained from the consumption of yet another unit of a good or service.

Milkshakes

A sweet, cold beverage made from blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.