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:

Cynical

Characterized by a belief that people are motivated by self-interest; distrustful of human sincerity or integrity.

Impatient

A feeling of restlessness and frustration resulting from being annoyed by delays, obstacles, or slow processes.

Driven

Being highly motivated or determined to achieve specific goals or outcomes.

Freud

Sigmund Freud, an Austrian neurologist who founded psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.