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:

Operating Activities

Activities that relate to the primary operations of a company, such as selling goods and services, which generate revenue and expenses.

Fixed Assets

Long-term tangible assets used in the operations of a business, not expected to be converted to cash within a year.

Current Level

Current level often refers to the present state or condition of a measurable variable, such as production, staffing, or inventory levels.

Financing Activities

Transactions and events where cash is raised or paid back to finance the company's operations, including issuing debt and equity or repaying loans.