While ________ seems to be a reasonable measure of risk when evaluating a large portfolio,the ________ of an individual security does not explain the size of its average return.
A)volatility,volatility
B)the mean return,standard deviation
C)mode,volatility
D)volatility,compound annual return
E)volatility,mean return

Question

Quizplus · Accepted Answer

Volatility is commonly used as a measure of risk for both portfolios and individual securities. However, the volatility of an individual security does not directly explain the size of its average return, making choice A correct.

While ________ Seems to Be a Reasonable Measure of Risk