Standard deviation measures the _____ risk of a security.
A) unique
B) asset-speciﬁc
C) systematic
D) total
E) diversiﬁable

Question

Quizplus · Accepted Answer

Standard deviation measures the total risk of a security, which includes both systematic and diversifiable risk. Unique and asset-specific risk refer to the risk inherent to a specific security, while systematic risk refers to the overall market risk that cannot be diversified away. Diversifiable risk refers to the risk that can be eliminated by diversifying a portfolio.

Standard Deviation Measures the _____ Risk of a Security