Choose the Word or Phrase in [ ] Which Will

question 37

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-The axiom that explains diversification is [Don't cry over spilt milk | Don't put all of your eggs in one basket].

---

Definitions:

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Variance

A statistical measurement of the dispersion between numbers in a data set, measuring how far each number in the set is from the mean.

Volatility

Measures the degree of variation of a trading price series over time, indicating the level of uncertainty or risk associated with the size of changes in a security's value.

Unsystematic Risk

The risk associated with a specific issuer of a security or investment, which can be mitigated through diversification.