The amount of systematic risk present in a particular risky asset, relative to the systematic risk present in an average risky asset, is called the particular asset's:
A) Beta coefficient.
B) Reward to risk ratio.
C) Law of One Price.
D) Diversifiable risk.
E) Treynor index.

Question

Quizplus · Accepted Answer

The beta coefficient measures the amount of systematic risk present in a particular risky asset relative to the systematic risk present in an average risky asset. It is a key concept in finance used to assess the risk and expected return of investments.

The Amount of Systematic Risk Present in a Particular Risky