Beta is a measure of systematic risk.

Name: Beta is a measure of systematic risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Beta is a measure of the sensitivity of an asset's returns to changes in the market returns. It measures the systematic risk or market risk of an asset, indicating how much an asset's return is expected to move relative to the market. Higher beta implies a higher systematic risk while lower beta implies lower risk. Therefore, the statement is true.

Beta Is a Measure of Systematic Risk