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

---

Definitions:

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.

Emphasis

A special importance, value, or prominence given to something.

Good

An item, material, or product that satisfies a want or need; can be tangible (physical) or intangible (like a service).

Perceived Fairness

The subjective judgment by individuals about the fairness or equity of something, often in economic transactions or distributive justice.