Which Is the Best Measure of Risk for a Single

question 216

Multiple Choice

Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversified portfolio?

• A) standard deviation; correlation coefficient.
• B) beta; variance.
• C) coefficient of variation; beta.
• D) beta; beta.
• E) variance; correlation coefficient.

---

Definitions:

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and/or evaluating information gathered from observation, experience, reflection, reasoning, or communication.

Parallel Process

A phenomenon in supervision and therapy where the interactions in one relationship (e.g., therapist-client) are mirrored or reflected in another relationship (e.g., supervisor-therapist).

Supervisees

Individuals who are under the guidance and oversight of a supervisor, especially in professional settings for training or development purposes.

Interpersonal Dynamics

The underlying patterns and interactions between individuals in a social setting, influencing their behaviors and relationships.