How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask vinsu Your Own Question
vinsu
vinsu, Professor
Category: Finance
Satisfied Customers: 522
Experience:  MBA in Finance and Marketing
187364
Type Your Finance Question Here...
vinsu is online now
A new question is answered every 9 seconds

business finance

Customer Question

which is the best measure of risk for an asset held in isolation? which is best the best measure for an asset held in a diversified portfolio?
a. variance;correlation coefficint
b. standard deviation; correlation coefficient
c. coeffiecient of variation; beta
d. beta;beta
Submitted: 10 years ago.
Category: Finance
Expert:  vinsu replied 10 years ago.

The answer is c.


For an asset in isolation we are interested in its variability of returns that can be found from the coefficient of variation. In aportfolio we are interested in the risk of an asset in a pertfolio and that is given by beta