Which one of the following measures the amount of systematic risk present in a particular risky asset relative to the systematic risk present in an average risky asset?
A) Beta
B) Reward-to-risk ratio
C) Risk ratio
D) Standard deviation
E) Price-earnings ratio

Question

Quizplus · Accepted Answer

Beta measures the systematic risk of an asset relative to the market as a whole, which is represented by a beta of 1. A beta above 1 indicates that the asset is more volatile than the market, while a beta below 1 indicates that the asset is less volatile than the market. Therefore, option A is the correct choice.

Which One of the Following Measures the Amount of Systematic