If we are able to fully diversify,what is the appropriate measure of risk to use?
A) Expected Return
B) Standard Deviation
C) Beta
D) Risk-free Rate of Return

Question

Quizplus · Accepted Answer

Beta is the appropriate measure of risk for a fully diversified portfolio as it measures the sensitivity of the portfolio's returns to the overall market returns, reflecting systematic risk.

If We Are Able to Fully Diversify,what Is the Appropriate