Since Total Risk Is Greater Than Systematic Risk, Should Standard

question 70

Essay

Since total risk is greater than systematic risk, should standard deviation be always greater than beta?

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Depletion Expense

An accounting approach to allocate the cost of extracting natural resources, like minerals or timber, over their productive life.

Mineral Deposit

A natural accumulation of minerals that can be economically extracted for use.

Trade-In Allowance

The amount credited to the buyer by a seller when the buyer returns a product, usually a vehicle, as part of the payment for a new item.