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Which of the following statements about risk measures is correct? a. Beta is a measure of systematic risk, whereas standard d
According to the capital asset pricing model (CAPM), investors should expect to be rewarded for the total risk associated wit
Check My Work (No more tries available) The standard deviation of the returns of Stock A is 45.9 percent, and the standard de
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Answer #1

1) a is correct. Beta is a measure of market risk while SD is a measure of total risk.

2) b is correct. CAPM is based on beta, which measures systematic risk.

3) a is correct. Lower SD means tighter probability distribution and lower total risk.

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