Beta measures:
A)the ability to diversify risk.
B)how an asset covaries with the market.
C)the actual return on an asset.
D)the standard of the assets' returns.
E)All of the above.

Question

Quizplus · Accepted Answer

Beta measures the degree to which an asset's return covaries with the return of the market, which is a measure of systematic risk. It does not directly relate to the ability to diversify risk or to the actual return or standard of returns on an asset.

Beta Measures