The systematic risk of the market is measured by:
A)a beta of 1.0.
B)a beta of 0.0.
C)a standard deviation of 1.0.
D)a standard deviation of 0.0.
E)a variance of 1.0.

Question

Quizplus · Accepted Answer

The beta of a stock or portfolio measures its sensitivity to movements in the overall market. A beta of 1.0 implies that the stock or portfolio moves in sync with the market, which is considered the systematic risk of the market. Therefore, choice A is the correct answer.

The Systematic Risk of the Market Is Measured By