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The _____ of an asset is the best measure of risk if investors hold the market portfolio, while _____ is the best measure of risk if investors only hold a single asset or portfolio.

1 Answer

3 votes

Answer:

Beta and standard deviation

Step-by-step explanation:

The beta deals in the overall market risk also it shows the total volatility

While on the other hand the standard deviation deals in the individual risk also it determined the total risk

So as per the above explanation, the beta should be considered for the market portfolio while the standard deviation should be considered for the single portfolio

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User Lars Noschinski
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