Question: Choose the most correct answer for the following: (1) Which is the best measure of risk for a stock which is to be held in

Choose the most correct answer for the following: (1) Which is the best measure of risk for a stock which is to be held in isolation? (2) Which is the best measure of risk for a stock to be held as part of a diversified portfolio?

A.

Variance; correlation coefficient.

B.

Standard deviation; correlation coefficient.

C.

Beta; variance.

D.

Standard deviation or CV; beta.

E.

Beta; beta.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!