Question

In: Finance

Beta measure which of the following? A. total risk B.non-diversifiable, aka market risk C.diversiable, aka firm...

Beta measure which of the following?

A. total risk

B.non-diversifiable, aka market risk

C.diversiable, aka firm specific risk

D.none of the above

Solutions

Expert Solution

B.non-diversifiable, aka market risk

Market risk affects all the securitied in the market. Beta is a measure of the volatility or systematic risk of a security. It reflects the tendency of a security's returns to respond to swings in the market.



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