Example:
variable = new StreamReader( file ).ReadToEnd();
Is that acceptable?
Yes, whenever you create a disposable object you must dispose of it preferably with a using statement
using (var reader = new StreamReader(file)) {
variable = reader.ReadToEnd(file);
}
In this case though you can just use the File.ReadAllText
method to simplify the expression
variable = File.ReadAllText(file);