While ________ Seems to Be a Reasonable Measure of Risk

question 45

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)the mean return, standard deviation
• B)volatility, volatility
• C)mode, volatility
• D)interest rate, cash flow

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Definitions:

K

The chemical symbol for Potassium, a soft, silver-white metal belonging to the alkali metal group of the periodic table.

[H+]

A notation representing the concentration of hydrogen ions in solution, often used in the context of acidity or pH levels.

K

Symbol for Potassium, a chemical element with atomic number 19, essential for various bodily functions including nerve signal transmission and muscle contraction.

[HCO3-]

Bicarbonate ion, a base often involved in maintaining pH balance in biological systems.