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 are indeed a measure of systematic risk (1) and they relate the return on an individual security to the return on the market (2), but they do not measure the variability of an asset's return; that is measured by standard deviation or variance.

Beta Coefficients 1. Are a Measure of Systematic Risk