The higher an asset's beta, ________.
A) the more responsive it is to changing market returns
B) the less responsive it is to changing market returns
C) the higher the expected return will be in a down market
D) the lower the expected return will be in an up market

Question

Quizplus · Accepted Answer

Beta measures an asset's volatility compared to the overall market. A higher beta means the asset is more responsive to changes in the market returns, while a lower beta means it is less responsive.

The Higher an Asset's Beta, ________