Which of the Following Is the Best Measure of the Systematic

question 68

Multiple Choice

Which of the following is the best measure of the systematic risk in a portfolio?

• A) variance
• B) standard deviation
• C) covariance
• D) beta

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Definitions:

Dollar Return

The total profit or loss in dollar terms from an investment, including both capital gains and dividends or interest.

Dollar Rate

The exchange rate of a currency against the US dollar, indicating how much one US dollar is worth in the foreign currency.

Mathematical Definition

A precise and formal description of a term or concept within the realm of mathematics.

Investment

The act of allocating resources, usually money, with the expectation of achieving a gain or profit over time.