________ risk is measured with beta.
A) Systematic
B) Unsystematic
C) International
D) Domestic

Question

Quizplus · Accepted Answer

Beta measures systematic risk, which is the risk that affects the entire market or a particular segment of the market, rather than individual securities. Unsystematic risk, on the other hand, is the risk that is specific to a particular company or industry and can be diversified away by holding a diversified portfolio of securities. International and Domestic are not relevant to the concept of risk measured by beta.

________ Risk Is Measured with Beta