Which of the following is statements is TRUE? Beta is a measure of unsystematic risk )...

Question

Question

business finance

Answer 1

Answer #1

Solution :-

The Correct Answer is (C) that is A Beta > 1 implies the asset has more systematic risk than the overall market.

Option ( a and b ) incorrect because Beta is a measure of systematic risk not a unsystematic risk.

and As high as the beta , As high the systematic risk ,

Beta is a Ratio of a stock return and market return.

Beta is a measure of volatity .

So the correct option is ( C )

Answer 2

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