Examveda
Examveda

Beta measures the ________.

A. Investment risk rate

B. Financial risk

C. Market risk

D. Market and finance risk

Answer: Option C

Solution(By Examveda Team)

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset based on its beta and expected market returns.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Comments ( 1 )

  1. Arjun Madhevad
    Arjun Madhevad :
    4 years ago

    The beta of a security is a measure of,

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process