While ________ Seems to Be a Reasonable Measure of Risk

question 86

Multiple Choice

While ________ seems to be a reasonable measure of risk when evaluating a large portfolio,the ________ of an individual security does not explain the size of its average return.

• A)volatility,volatility
• B)the mean return,standard deviation
• C)mode,volatility
• D)none of the above

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Definitions:

Linear Model

A mathematical representation that describes the relationship between one or more independent variables and a dependent variable.

Diameters

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

Weekly Salaries

The amount of money or compensation given to an employee for one week of work.

Teaching Experience

The accumulated amount of time and expertise gained by an individual in the field of education, through the act of instructing or training learners.