Vidyalelo
Commerce · Q277

Financial Management

Graduate and Post Graduate · Commerce · question 277

Q277

The relationship between potential unsystematic risk and reward is given by ___________.

A.
Excess return to beta ratio
Answer
B.
Excess return to security
C.
Excess return to beta square ratio
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
The relationship between potential unsystematic risk and reward is given by excess return to beta ratio. Beta Ratio refers to the efficiency in which a given filter element removes particles of a given size.