Question
Which of the following statements about the types of risk when investing in shares is LEAST consistent with the lecture material: Measures of risk with
Which of the following statements about the types of risk when investing in shares is LEAST consistent with the lecture material:
Measures of risk with shares usually focus on the probability of making a loss when investing in the shares of a particular company.
Default risk associated with a company failure can by significantly reduced by investing in a diversified portfolio of shares in many different companies.
The systematic risk of a share is a measure of the sensitivity of the share price returns to the economy as a whole.
The total risk of a share is the standard deviation of share price returns and is a measure of spread or volatility of those returns.
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