21.4k views
0 votes
E. do the sd, cv, and beta produce the same risk ranking

1 Answer

3 votes
Standard deviation measures the total amount of risk. It is a summation of both systematic and unsystematic risk. CV is a much more better parameter than SD. It is obtained by dividing SD with mean. Beta is a parameter for systematic risk which measures the sensitivity towards market.
User Jeff Peterson
by
8.4k points