Beta coefficients
1) are a measure of systematic risk
2) relate the return on an individual security to
The return on the market
3) measure the variability of as asset's return
A) 1 and 2
B) 1 and 3
C) 2 and 3
D) all of the above

Question

Quizplus · Accepted Answer

Beta coefficients measure systematic risk and relate the return on an individual security to the return on the market. They do not measure the variability of an asset's return, which is typically measured by standard deviation.

Beta Coefficients 1) Are a Measure of Systematic Risk