The best measure to use for measuring the risk of a random variable would be:

a.the expected value of the distribution

b. the weighted average of the distribution using probability as weights

c.the expected deviation from the mean

d. the variance of the distribution

e. the range of the distribution

2. The beta of a portfolio of stocks is:

a) always smaller than the betas of any of the individual stocks.

b) always larger than the betas of any of the individual stocks.

c) can never be equal to zero.

d) is equal to the arithmetic average of the individual stocks' beta.

e) is equal to the weighted average of the individual stocks' beta.