While ________ Seems to Be a Reasonable Measure of Risk

question 24

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)volatility,compound annual return
• E)volatility,mean return

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Definitions:

Local Laws

Regulations and ordinances that are enacted and enforced by local government entities such as cities or counties.

Tea Act

A 1773 British law that lowered the tax on tea to aid the financially troubled British East India Company, leading to the Boston Tea Party and escalating tensions between Britain and the American colonies.

East India Company

A British trading company granted a monopoly on trade in the East Indies, playing a crucial role in British imperial expansion and control over India.

Surcharge

An additional charge, tax, or cost added to the usual cost of goods or services.