A treasury bond has a systematic risk of:
A) 1.5.
B) 0.
C) 1.
D) insufficient information provided.

Question

Quizplus · Accepted Answer

Treasury bonds are considered to have no systematic risk because their returns are not correlated with the returns of the market. Systematic risk, also known as market risk, affects the overall market, not just a particular security or sector. Since the government backs treasury bonds, their returns are generally considered safe and independent of market fluctuations.

A Treasury Bond Has a Systematic Risk Of