Which of the following statements about risk measures is correct?
A)Beta is a measure of total risk, whereas standard deviation is the measure of unsystematic risk.
B)Beta is a measure of unsystematic risk, whereas standard deviation is the measure of total risk.
C)Beta is a measure of total risk, whereas standard deviation is the measure of systematic risk.
D)Beta is a measure of systematic risk, whereas standard deviation is the measure of total risk.
E)Beta is a measure of total risk, whereas Standard deviation is the measure of systematic risk.

Question

Quizplus · Accepted Answer

Beta measures the systematic risk of an investment, while standard deviation measures the total risk (both systematic and unsystematic).

Which of the Following Statements About Risk Measures Is Correct