Question

Which of the following is the accepted measurement of stand-alone risk?

a) Expected Value of Return

b) Stand Deviation of Stock Returns

c) Beta

d) Correlation coefficient

e) Stand deviation of market returns

f) b. and e.

Answer 1

1 the correct answer is b) stand deviatio of stock returns 2 stand alone risk is concerned with the specific unit or stock. Whch is aksed in question 3 therefore answer b is correct note and also not f. 4 Other explanation 5 a) expected value of return tell only the returns from the stock in future calculated on some factor basis 6 c) beta tells the relation between the market risk and portfolion riks 7 d) correlation coefficient tells the relation between two vairbles 8 e) standard deviation of market returns tell the risk involved in the market portfolio overall. 9 f) b, and e also not possible only B is possible because question is aksed about stand alonne risk