One index of systematic risk is a stock's beta coefficient.

Name: One index of systematic risk is a stock's beta coefficient.
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Question

One index of systematic risk is a stock's beta coefficient.​

Quizplus · Accepted Answer

True, a stock's beta coefficient measures its relative volatility compared to the overall market. Higher beta stocks tend to be riskier and more sensitive to market fluctuations, while lower beta stocks tend to be more stable and less affected by market movements. Therefore, beta is commonly used as an index of systematic risk.

One Index of Systematic Risk Is a Stock's Beta Coefficient