Question
If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for
If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the ________. If the investor considers adding one stock to a market index fund, the appropriate measure of security risk for that investor is the ________.
A.stock's standard deviation; standard deviation of the market
B.stock's beta; standard deviation of the market
C.standard deviation of the market; stock's beta
D.stock's standard deviation; stock's beta;
E.stock's beta; stock's standard deviation
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