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Which of the following measures;standard deviation coefficient of variation beta best represent the risk each dtocks...

Which of the following measures;standard deviation coefficient of variation beta best represent the risk each dtocks contributions to the above portfolio

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Answer #1

Standard Deviation - refers to the quantity expressing by how much the members of a group differ from the mean value for the group.

Coefficient of Variation - represents the ratio of the standard deviation to the mean.

Beta - is used in CAPM. It is a measure of volatility, or systematic risk, of a security, or portfolio, in comparison to the market as a whole.

Thus, from the above definition, it is clear that Beta represents the risk that each stock contributes to the portfolio.

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Incase of any doubt, please comment below. I would be happy to help.

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