$$\begin{array} { | c | c | c | c | }
\hline \text { Asset } & \text { Return } & \text { Beta } & \begin{array} { c }
\text { Standard } \
\text { Deviation }
\end{array} \
\hline \text { A } & 10 \% & 0.74 & 20 \% \
\hline \text { B } & 12 \% & 1.00 & 40 \% \
\hline \text { C } & 14 \% & 1.25 & 30 \% \
\hline
\end{array}$$ Refer to the data in the table. Which asset possesses the greatest amount of systematic risk?
A)A
B)B
C)C
D)Both A and C
E)Impossible to tell, given the above information

Question

$$\begin{array} { | c | c | c | c | } 
\hline \text { Asset } & \text { Return } & \text { Beta } & \begin{array} { c } 
\text { Standard } \
\text { Deviation }
\end{array} \
\hline \text { A } & 10 \% & 0.74 & 20 \% \
\hline \text { B } & 12 \% & 1.00 & 40 \% \
\hline \text { C } & 14 \% & 1.25 & 30 \% \
\hline
\end{array}$$ Refer to the data in the table. Which asset possesses the greatest amount of systematic risk?
A)A
B)B
C)C
D)Both A and C
E)Impossible to tell, given the above information

Quizplus · Accepted Answer

Systematic risk is measured by beta, and Asset C has the highest beta of 1.25, indicating it has the greatest systematic risk.

Refer to the Data in the Table