Which is the best measure of risk for a single asset held in isolation, and which is the best measure for an asset held in a diversified portfolio? Group of answer choices Coefficient of variation; beta. Beta; beta. Variance; correlation coefficient. Beta; variance. Standard deviation; correlation coefficient.

Respuesta :

Answer:Coefficient of variation; beta.

Step-by-step explanation:Coefficient of variation is a ratio which is used to show the level dispersion of values or treatments around the mean of a set of values.

THE COEFFICIENT OF VARIATION IS THE RATIO OF THE STANDARD DEVIATION TO THE MEAN OF A SET OF NUMBERS OR TREATMENT.

THE HIGHER THE COEFFICIENT OF VARIATION THE HIGHER THE DISPERSION FROM THE MEAN.

the coefficient of variation is the best measure of risk for an isolated single asset.

Beta is the a measure of how volatile a particular stock is compared to the market.

Answer:

Coefficient of Variation; Beta

Step-by-step explanation:

For a single asset held in isolation the coefficient of variation is the best measure of risk as it measure how the the assets returns are dispersed from the expected return of the investors a high value means there is greater dispersion and therefore a higher risk vice versa.

Beta is the best measure for assets held in a  portfolios because the beta coefficient of a stock determines how the riskiness of the diversified  portfolio will be affected