A beta value of 0.5 for a security indicates
A)the security has average systematic risk
B)the security has above-average systematic risk
C)the security has no unsystematic risk
D)the security has below-average systematic risk

Question

Quizplus · Accepted Answer

A beta value of 0.5 indicates that the security has below-average systematic risk as it is less volatile than the market. A security with a beta of 1 has average systematic risk, while a security with a beta greater than 1 has above-average systematic risk. A beta less than 1 implies that the security is less volatile than the market.

A Beta Value of 0