Home GradesPersonalized Final ExamChapters 711 14 16 I Back

Home GradesPersonalized Final Exam-Chapters 7-11, 14, 16 I Back to Attempts Score:3 26. Chapter b Multiple Choice 08-051, Section b Multiple Choice 08-051, Problem b Multiple Choice 08-051 Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversifled portfolilo? Oa. Varlance; correlation coefficient Ob. Beta, beta. Oc. Coefficient of varlation, beta. Od. Standard deviation; correlation coefficient Copyright NoticesTerms of UsePrivacy Notice Security Notice Accessibility

Solution

Correct option is > c. Coefficient of variation; beta

Coefficient of variation = Standard deviation / Mean

Coefficient of variation measures the relative variability from mean population. Beta measure the risk of an asset in a given portfolio.