Systematic risk is measured by:
A)the standard deviation.
B)the arithmetic average.
C)the geometric average.
D)the mean.
E)beta.

Question

Quizplus · Accepted Answer

Systematic risk is measured by beta, which is a measure of a security's volatility in relation to the market as a whole. The higher the beta, the higher the systematic risk. Standard deviation, arithmetic and geometric averages, and mean are measures of dispersion or central tendency but not specific measures of systematic risk.

Systematic Risk Is Measured By