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)variance
B)squared deviation
C)standard deviation
D)mean
E)beta coefficient

Question

Quizplus · Accepted Answer

Beta coefficient measures the systematic risk or market risk of a particular asset, which reflects the volatility of the asset in relation to the market as a whole. A beta of 1 indicates the same level of risk as the market, while a beta greater than 1 indicates higher risk and a beta less than 1 indicates lower risk. Therefore, option E is the correct choice. Variance, squared deviation, standard deviation, and mean are measures of total risk, not systematic risk.

Which One of the Following Measures the Amount of Systematic