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Which of the Following Statements About Risk Is NOT True

Question 52

Multiple Choice

Which of the following statements about risk is NOT true?


A) Unsystematic risk is the security's own residual variation not related to the market.
B) Beta is a measure of the security's relationship to overall market variations.
C) A low-beta security's prices vary more than overall market prices do.
D) Risk is calculated as the variance of the share price around the average price.

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