The amount of systematic risk present in a particular risky asset relative to that in an average risky asset is called the:
A)market risk premium
B)beta coefficient
C)security's alpha
D)standard deviation
E)asset mean

Question

Quizplus · Accepted Answer

The specific term used to measure the systematic risk of a particular risky asset relative to an average risky asset is called the beta coefficient. Therefore, option B is the correct answer. Market risk premium refers to the expected return of the market portfolio over the risk-free rate, whereas alpha is a measure of a security's performance compared to its benchmark. Standard deviation measures the spread of returns, and asset mean refers to the average return of an individual asset.

The Amount of Systematic Risk Present in a Particular Risky