Q713
In capital market line, risk of efficient portfolio is measured by its
A.
standard deviation
AnswerB.
variance
C.
aggregate risk
D.
ineffective risk
Answer: Option A
Solution
Answer: Option A
Solution:
In capital market line, risk of efficient portfolio is measured by its standard deviation. The standard deviation is a statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.