Portfolio risk is typically measured by ________ while the risk of a single investment is measured by ________.
A) standard deviation; beta
B) security market line; standard deviation
C) beta; standard deviation
D) beta; slope of the characteristic line

Question

Quizplus · Accepted Answer

Portfolio risk is typically measured by beta, which is the measure of the systematic risk of a portfolio relative to the market. On the other hand, the risk of a single investment is typically measured by standard deviation, which captures the volatility of returns around the mean. Therefore, option C is the correct choice.

Portfolio Risk Is Typically Measured by ________ While the Risk