The total risk for a security can be measured by its
A) Beta with the market portfolio
B) Systematic risk
C) Standard deviation of returns
D) Unsystematic risk
E) Alpha with the market portfolio

Question

Quizplus · Accepted Answer

The total risk for a security can be measured by the standard deviation of returns. This is because the standard deviation measures the variability of a security's returns around its average or expected return. The higher the standard deviation, the greater the total risk for the security.

The Total Risk for a Security Can Be Measured by Its