Which one of the following betas represents the greatest level of systematic risk?
A) 0.05
B) 0.68
C) 1.00
D) 1.19
E) 1.27

Question

Quizplus · Accepted Answer

Beta measures the systematic risk of a security. A beta of 1.0 indicates that the security's price will move with the market, while a beta greater than 1.0 indicates that the security is more volatile than the market, and a beta less than 1.0 indicates that the security is less volatile than the overall market. Therefore, a beta of 1.27 represents the greatest level of systematic risk among the given choices.

Which One of the Following Betas Represents the Greatest Level