In: Finance
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
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.