Portfolio risk is most often measured by professional investors using the:
A)expected value
B)portfolio beta
C)weighted average of individual risk
D)standard deviation

Question

Quizplus · Accepted Answer

The standard deviation is the most common measure of portfolio risk used by professional investors. It measures the amount of variability or dispersion of returns around the average return of the portfolio, and is considered to be a reliable indicator of the riskiness of an investment portfolio. A lower standard deviation indicates lower risk, while a higher standard deviation indicates higher risk. The other options are not as commonly used in measuring portfolio risk.

Portfolio Risk Is Most Often Measured by Professional Investors Using