Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 4CP
Summary Introduction
To Select: The correct option from the given four options about the association of the concept of beta .
Introduction: Beta measures the non-diversifiable and systematic risk in a particular stock investment.
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Students have asked these similar questions
Which one of the following measures is relevant for assessing exposure to systematic risk?
A. variance
B. beta
C. standard deviation
D. theta
E. alpha
Total risk is measured by _____ and systematic risk is measured by _____.
Group of answer choices
Standard deviation; variance.
Standard deviation; beta.
Beta; standard deviation.
Alpha; beta.
Beta; alpha.
Why is the variance (or standard deviation) used as a measure of risk? What are the advantages and disadvantages of this risk measure?
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