The systematic risk of the market is represented by:
A) A beta of 1.0.
B) A beta of 0.0.
C) A standard deviation of 1.0.
D) A standard deviation of 0.0.
E) A variance of 1.0.

Name: The systematic risk of the market is represented by: A) A beta of 1.0. B) A beta of 0.0. C) A standard deviation of 1.0. D) A standard deviation of 0.0. E) A variance of 1.0.
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Question

Quizplus · Accepted Answer

A beta of 1.0 represents the systematic risk of the market, indicating that the asset moves exactly in line with the market.

The Systematic Risk of the Market Is Represented By