Beta is a statistical measure of
A) unsystematic risk.
B) total risk.
C) the standard deviation.
D) the relationship between an investment's returns and the market return.

Question

Quizplus · Accepted Answer

Beta measures the relationship between an investment's returns and the market return. It indicates the level of systematic risk inherent in an investment, and is often used in portfolio management to assess the diversification benefits of adding a new asset to a portfolio. Beta is not a measure of total risk or standard deviation, and does not directly capture unsystematic risk.

Beta Is a Statistical Measure of