A measure of the riskiness of an asset held in isolation is ____________.
A) beta
B) standard deviation
C) covariance
D) semi-variance

Question

Quizplus · Accepted Answer

Standard deviation measures the amount of variability or dispersion of the returns of an asset from its mean or expected return. It gives an indication of the riskiness of an asset held in isolation. Other options such as beta, covariance, and semi-variance measure the asset's sensitivity to market risk or its co-movements with other assets, which may not fully reflect the asset's inherent risk when held in isolation.

A Measure of the Riskiness of an Asset Held in Isolation