Which of the following is a characteristic of beta?

Question

Quizplus · Accepted Answer

A beta of 1.0 is considered to have the same level of risk as the market. A beta of greater than 1.0 indicates greater volatility or risk than the market, while a beta of less than 1.0 indicates less volatility or risk than the market. Option A is incorrect because beta can measure the volatility of returns on an individual stock as well as a bond. Option C is incorrect because it incorrectly states that a higher beta indicates less risk than the market.

Which of the Following Is a Characteristic of Beta