The stand-alone risk is the risk an asset would have if it were a firm's only asset and it is measured by the variability of the asset's expected returns.

Question

Quizplus · Accepted Answer

The definition of stand-alone risk is accurate. It refers to the risk that an individual asset faces when considered in isolation or as part of a diversified portfolio, rather than in relation to the broader market or economy.

The Stand-Alone Risk Is the Risk an Asset Would Have