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:

Business Transaction

A financial exchange or activity that occurs between parties in the course of business.

Three-Factor Theory

A psychological theory that categorizes the sources of motivation into three factors: autonomy, competence, and relatedness.

Cultural Determinant

A factor, often related to beliefs, values, or norms, within a culture that influences behaviors or outcomes within that society.

Ideal Image

A person's conception of something in its absolute perfection or an entity's representation of itself or its products as perfect or near perfect.