If an individual owns only one security, what is the most appropriate measure of risk?
A) Standard deviation
B) Correlation
C) Beta
D) Covariance
E) All of the above.

Question

Quizplus · Accepted Answer

Standard deviation is the most appropriate measure of risk for an individual security because it quantifies the volatility or variability of the security's returns, which is a direct measure of its risk. Correlation, beta, and covariance are measures used to assess risk in the context of a portfolio or in relation to the market or another security, not for a single security in isolation.

If an Individual Owns Only One Security, What Is the Most