Which of the following best measures an asset's risk?

Select one:

a. Expected return

b. The cash return

c. The standard deviation

d. The probability distribution

You are considering buying some stock in Continental Breakfast. Which of the following is an example of nondiversifiable risk?

Select one:

a. Risk resulting from a news release that there are issues with Continental's production

b. Risk resulting from an explosion in a factory owned by Continental

c. Risk resulting from a general decline in the stock market

d. Risk resulting from an impending lawsuit against Continental

You are considering investing in General Motors (GM) Company. Which of the following is an example of diversifiable risk?

Select one:

a. Risk resulting from an expected recession

b. Risk resulting from the possibility of a stock market crash

c. Risk resulting from interest rates decreasing

d. Risk resulting from uncertainty regarding a possible strike against GM