The standard deviation measures:
A)systematic risk of a security.
B)unsystematic risk of a security.
C)total risk of a security.
D)the equity risk premium.

Question

Quizplus · Accepted Answer

The standard deviation measures the total risk of a security, including both systematic and unsystematic risk. It does not measure the equity risk premium, which is the excess return demanded by investors for investing in a particular equity over a risk-free asset.

The Standard Deviation Measures