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In the Total Market Risk Equation for Security I as Follows

Question 21

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In the total market risk equation for security i as follows: σi2=βiI2σI2+σa2\sigma _ { i } ^ { 2 } = \beta _ { i I } ^ { 2 } \sigma _ { I } ^ { 2 } + \sigma _ { a } ^ { 2 } which term denotes the market risk of security i ?
a. σt2\quad \sigma ^ { 2 }_ {t }
b. βtI2\quad \beta ^ { 2 }_ \mathrm { tI }
c. σ2\quad \sigma ^ { 2 } εt
d. βtI2σt2\quad \beta ^ { 2 }_{ tI} \sigma ^ { 2 }_ { t}

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