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)the mean return, standard deviation
B)volatility, volatility
C)mode, volatility
D)interest rate, cash flow

Question

Quizplus · Accepted Answer

Volatility is a common measure of risk for portfolios, but the volatility of an individual security does not necessarily explain its average return.

While ________ Seems to Be a Reasonable Measure of Risk