According to portfolio theory, the most relevant risk for any widely traded individual security is its:

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Portfolio theory suggests that the most relevant risk for an individual security is its systematic risk, which is the risk associated with the entire market or a particular sector. Unsystematic risk can be diversified away by holding a well-diversified portfolio. Standard deviation is a measure of total risk, not just systematic risk. Covariance risk is not a commonly used term in finance.

According to Portfolio Theory, the Most Relevant Risk for Any