The beta of a security provides an:

Question

Quizplus · Accepted Answer

Beta is a measure of systematic risk, which is the risk that is inherent to the entire market or a particular market segment. It indicates the extent to which the returns of a security are affected by the movements of the overall market. Therefore, option D is the correct answer as it states that beta provides an estimate of the systematic risk of the security. The other options are incorrect as they do not relate to the definition and concept of beta.

The Beta of a Security Provides An