Which one of the following measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset?
A)Squared deviation
B)Beta coefficient
C)Standard deviation
D)Mean
E)Variance

Question

Quizplus · Accepted Answer

The beta coefficient measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset. It is used in the capital asset pricing model (CAPM) to determine the expected return on an asset.

Which One of the Following Measures the Amount of Systematic