When comparing two equal-sized investments, the ____ is an appropriate measure of total risk.
A) standard deviation
B) coefficient of variation
C) correlation
D) covariance

Question

Quizplus · Accepted Answer

The standard deviation is an appropriate measure of total risk as it measures the extent of dispersion of possible outcomes from the expected outcome. It gives an idea of how much the actual returns can deviate from the expected return. This makes it a more reliable measure of total risk compared to the coefficient of variation, correlation, and covariance.

When Comparing Two Equal-Sized Investments, the ____ Is an Appropriate