A Measure of the Riskiness of an Asset Held in Isolation

question 78

Multiple Choice

A measure of the riskiness of an asset held in isolation is ____________.

• A) beta
• B) standard deviation
• C) covariance
• D) semi-variance

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Definitions:

Cost Savings

The reduction in costs achieved through efficiency improvements, strategic purchase, or avoiding unnecessary expenses.

CCA Class

In Canadian taxation, a classification system for capital assets that determines the rate at which they can be depreciated.

Annual Operating Costs

The total expenses associated with running a business or operating a piece of equipment over one year.

Equivalent Annual Cost

A financial analysis tool used to compare the cost efficiency of two or more investments or projects with different lifespans by normalizing their costs on an annual basis.