If an Individual Owns Only One Security the Most Appropriate

question 106

Multiple Choice

If an individual owns only one security the most appropriate measure of risk is

• A) standard deviation.
• B) correlation.
• C) beta.
• D) covariance.
• E) the risk-free rate.

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Definitions:

Industry Supply

The total quantity of a good or service that is available for purchase in a given industry, at a given time and place.

Supply Schedule

Shows how much of a product firms will sell at alternative prices.

Average Fixed Costs

The total fixed costs divided by the quantity of output produced; they decrease as output increases.

Silk Flower Arrangements

Artificial floral displays made from silk or similar synthetic materials, often used as decorations.