Vidyalelo
Management · Q770

International Finance and Treasury

Graduate and Post Graduate · Management · question 770

Q770

Standard deviation determine

A.
systematic risk of a security
B.
unsystematic risk of security
C.
total risk of security
Answer
D.
premium of security

Answer: Option C

Solution

Answer: Option C
Solution:
Standard deviation determine total risk of security. Standard deviation is a statistical measurement in finance that, when applied to the annual rate of return of an investment, sheds light on the historical volatility of that investment.