Question

A measure of total risk is the ______________

Answer 1

The measure of Total Risk is Standard Deviation.

Explanation: In risk measurements usually of stock, the portfolio we calculate average return called mean of stock, and we see the difference between mean and return of stock to find the variance, and this helps to find the standard deviations denotes volatility of the stock and it's a total risk.

Total risk comprises of unique and market risk. At the same time, beta measures a stock's sensitivity to the market hence market risk or systematic risk.

Whereas standard deviations give the measurement for total risk.