Beta measures:
A) the ability to diversify risk.
B) how an asset covaries with the market.
C) the actual return on an asset.
D) the standard of the assets' returns.

Name: Beta measures: A) the ability to diversify risk. B) how an asset covaries with the market. C) the actual return on an asset. D) the standard of the assets' returns.
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Question

Quizplus · Accepted Answer

Beta measures how an asset's returns move relative to the returns of the market as a whole, indicating the asset's sensitivity to market movements.

Beta Measures