Security A has a beta of .99, security B has a beta of 1.2, and security C has a beta of - 1.0. This information indicates that
A) security A has the highest degree of market risk.
B) security C would be the best investment if a strong bull market is expected.
C) security C has the highest degree of market risk.
D) security B has 20% more systematic risk than the market.

Question

Quizplus · Accepted Answer

Beta measures a security's sensitivity to market movements. A beta of 1.2 means security B has 20% more systematic risk than the market, which has a beta of 1.

Security a Has a Beta of