The market (systematic)risk associated with an individual stock is most closely identified with the
A)variance of the returns of the stock.
B)variance of the returns of the market.
C)beta of the stock.
D)standard deviation of the stock.

Question

Quizplus · Accepted Answer

Beta is a measure of a stock's systematic risk, which refers to the risk of the overall market affecting the price of a stock. The higher the beta, the greater the stock's sensitivity to market movements, indicating greater systematic risk. Variance and standard deviation measure a stock's total risk, which includes both systematic and unsystematic risk. The variance and standard deviation of the market returns would not specifically identify the systematic risk of an individual stock.

The Market (Systematic)risk Associated with an Individual Stock Is Most