Refer to the data in the table.Which asset possesses the greatest amount of systematic risk?
A) A
B) B
C) C
D) Both A and C
E) Impossible to tell, given the above information

Question

Refer to the data in the table.Which asset possesses the greatest amount of systematic risk?
A) A 
B) B 
C) C 
D) Both A and C 
E) Impossible to tell, given the above information

Quizplus · Accepted Answer

Asset C possesses the greatest amount of risk because it has the highest beta. A beta of 1.25, or any value greater than 1, means the asset has greater than average risk.

Refer to the Data in the Table