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2N5.2
2.  What's the difference between standard deviation and beta? (1 pt)

  1. Ha Ha! Nice try, Dr. J., trick question: there is no difference--they measure the same thing.
  2. Standard deviation is the square root of beta.
  3. Standard deviation measures just unsystematic risk and beta measures just systematic risk.
  4. Standard deviation measures total risk and beta measures systematic risk.

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