While seems to be a reasonable measure of risk when evaluating a large portfolio, the
of an individual security does not explain the size of its average return.
A) volatility, volatility
B) the mean return, standard deviation
C) mode, volatility
D) mode, mean return

When we evaluate a large portfolio with various kinds of securities and investment, the volatility helps the best to access the risk factor present in it.

Whereas the risk can not be measured through the volatility of an individual security, as there will not be major effect of change in prices, on other securities.

As the volatility factor is in correspondence of other factors, as well.

While ________ seems to be a reasonable measure of risk when evaluating a large portfolio, the ________ of an individual security does not explain the size of its average return. A) volatility, volatility B) the mean return, standard deviation C) mode, volatility D) mode, mean return

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While seems to be a reasonable measure of risk when evaluating a large portfolio, the
of an individual security does not explain the size of its average return.
A) volatility, volatility
B) the mean return, standard deviation
C) mode, volatility
D) mode, mean return