high beta and standard deviation
high beta, low standard deviation
low beta, low standard deviation
low beta, low variance
✅ The correct answer is A.
Stock with large amount of contribution of risk in a diversified portfolio is represented by high beta and standard deviation. Beta and standard deviation are measures by which a portfolio or fund’s level of risk is calculated. Beta compares the volatility of an investment to a relevant benchmark while standard deviation compares an investment’s volatility to the average return over a period of time.
Stock with large amount of contribution of risk in a diversified portfolio is represented by high beta and standard deviation. Beta and standard deviation are measures by which a portfolio or fund’s level of risk is calculated. Beta compares the volatility of an investment to a relevant benchmark while standard deviation compares an investment’s volatility to the average return over a period of time.