A higher beta of an asset reflects

Name: A higher beta of an asset reflects
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A higher beta of an asset reflects a higher covariance between the asset's returns and the market returns. This means that the asset's returns are more closely tied to market movements, which can result in higher returns during bullish markets but also higher losses during bearish markets. Therefore, a higher beta is generally associated with higher risk. The other choices given are incorrect.

A Higher Beta of an Asset Reflects