What risk measure is the most relevant in the case


Risk And Rate Of Return Discussion Board

An investor "A" has a well-diversified portfolio. What risk measure is the most relevant in this case, standard deviation or beta? Why? Explain!

If risk-free rate is 4% beta of stock ABC is 1.5, and expected return on the market is 8%, what is the required rate of return on stock ABC? Now, assume you expect to realize an annual return of 12% by holding ABC, should you buy it or not, why? Explain.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Finance Basics: What risk measure is the most relevant in the case
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