Q25
Beta measures the ________.
A.
Investment risk rate
B.
Financial risk
C.
Market risk
AnswerD.
Market and finance risk
Answer: Option C
Solution
Answer: Option C
Solution:
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.