The amount of systematic risk present in a particular risky asset,relative to the systematic risk present in an average risky asset,is called the particular asset's:
A)beta coefficient.
B)reward-to-risk ratio.
C)total risk.
D)diversifiable risk.
E)Treynor index.

Question

Quizplus · Accepted Answer

The amount of systematic risk in a particular asset relative to the systematic risk in an average asset is measured by the asset's beta coefficient. Beta measures the asset's volatility in relation to the market as a whole. High beta assets are considered riskier than low beta assets, as they are more correlated with the overall market movements. Therefore, option A is the correct answer.

The Amount of Systematic Risk Present in a Particular Risky