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explain why CAPM beta is thought to be a more relevant measure of risk than standard...

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Finance

explain why CAPM beta is thought to be a more relevant measure ofrisk than standard deviation for a well-diversified investor

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Beta measures the volatility a stock adds to a diversified portfolio standard deviation is the volatility if the stock is the only asset in your portfolio So Beta is more important if you plan to hold a diversified portfolio standard    See Answer
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explain why CAPM beta is thought to be a more relevant measure ofrisk than standard deviation for a well-diversified investor

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