Market model beta measures an asset's sensitivity to changes in the market.

Name: Market model beta measures an asset's sensitivity to changes in the market.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

Market model beta measures the degree to which an asset's return moves with changes in the market. A beta of 1 means that the asset moves in line with the market, while a beta greater than 1 indicates the asset is more volatile than the market and a beta less than 1 indicates that the asset is less volatile than the market.

Market Model Beta Measures an Asset's Sensitivity to Changes in the Market