Standard deviation and beta both measure risk, but they are different in that   beta measures both systematic and unsystematic risk. beta measures only systematic risk while standard deviation is a measure of total risk. beta measures only unsystematic risk while standard deviation is a measure of total risk. beta measures both systematic and unsystematic risk while standard deviation measures only systematic risk. beta measures total risk while standard deviation measures only nonsystematic risk.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Standard deviation and beta both measure risk, but they are different in that

 

  1. beta measures both systematic and unsystematic risk.
  2. beta measures only systematic risk while standard deviation is a measure of total risk.
  3. beta measures only unsystematic risk while standard deviation is a measure of total risk.
  4. beta measures both systematic and unsystematic risk while standard deviation measures only systematic risk.
  5. beta measures total risk while standard deviation measures only nonsystematic risk.
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