Which of the following is correct?
A) Security Z has the greatest total risk because it has the largest standard deviation.
B) Security X has the greatest total risk because it has the largest beta.
C) Security X has the greatest diversifiable risk because it has the largest beta.
D) Security Y has the lowest total risk because it has the lowest beta.
E) An equally-weighted portfolio of XYZ will have the same systematic risk as the market portfolio.

Question

Which of the following is correct?
A) Security Z has the greatest total risk because it has the largest standard deviation. 
B) Security X has the greatest total risk because it has the largest beta. 
C) Security X has the greatest diversifiable risk because it has the largest beta. 
D) Security Y has the lowest total risk because it has the lowest beta. 
E) An equally-weighted portfolio of XYZ will have the same systematic risk as the market portfolio.

Quizplus · Accepted Answer

The Answer of  Which of the following is correct?
A) Security Z has the greatest total risk because it has the largest standard deviation. 
B) Security X has the greatest total risk because it has the largest beta. 
C) Security X has the greatest diversifiable risk because it has the largest beta. 
D) Security Y has the lowest total risk because it has the lowest beta. 
E) An equally-weighted portfolio of XYZ will have the same systematic risk as the market portfolio.

Which of the Following Is Correct