Question: Choose the correct answer for the following: (1) Which is the best measure of risk for choosing an asset which is to be held in

Choose the correct answer for the following: (1) Which is the best measure of risk for choosing an asset which is to be held in isolation? (2) Which is the best measure for choosing an asset to be held as part of a diversified portfolio? why are these the correct answers?

Variance; correlation coefficient

Standard deviation; correlation coefficient

Beta; Variance

Coefficient of variation; beta

Beta; beta

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