If we are able to fully diversify,what is the appropriate measure of risk to use?
A) expected return
B) standard deviation
C) beta
D) risk-free rate of return

Question

Quizplus · Accepted Answer

Beta is the appropriate measure of risk when we are able to fully diversify because it measures the risk of an investment relative to the market, which is the undiversifiable or systematic risk remaining after diversification.

If We Are Able to Fully Diversify,what Is the Appropriate