The measure of beta associates most closely with:
A)idiosyncratic risk.
B)the risk-free return.
C)systematic risk.
D)unexpected risk.
E)unsystematic risk.

Question

Quizplus · Accepted Answer

Beta is a measure of systematic risk, which is the risk associated with the overall market or a particular market segment. It measures the degree to which a security's returns move in relation to the returns on the market. Therefore, option C is the correct choice.

The Measure of Beta Associates Most Closely With