Question:

Standard deviation and beta both measure risk, but they are different in that

A.

beta measures both systematic and unsystematic risk.

B.

beta measures only systematic risk while standard deviation is a measure of total risk.

C.

beta measures only unsystematic risk while standard deviation is a measure of total risk.

D.

beta measures both systematic and unsystematic risk while standard deviation measures only systematic risk.

Answer» b. beta measures only systematic risk while standard deviation is a measure of total risk.