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An asset's total risk (standard deviation): is an inappropriate measure of risk if you invest all your money in that single asset. cannot be reduced

An asset's total risk (standard deviation): is an inappropriate measure of risk if you invest all your money in that single asset. cannot be reduced through diversification. is an appropriate risk measure for those with diversified portfolios. it is the same as its covariance with the market returns. is unrelated to the risk premium the CAPM predicts

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