Beta measure indicates:
A) The ability to diversify risk
B) The change in the rate of return on an investment for a given change in the market return
C) The actual return on an asset
D) A and C

Question

Quizplus · Accepted Answer

Beta measure calculates the change in the rate of return on an investment for a given change in the market return. It is a measure of systematic risk or market risk and not related to the ability to diversify risk or the actual return on an asset.

Beta Measure Indicates