Question

In the Capital Asset Pricing Model (CAPM), the beta (β)

Q: Answer-In the Capital Asset Pricing Model (CAPM), the beta (β) of a security measures its:

Beta measures the sensitivity of a securitys returns to movements in the overall market portfolio. It quantifies the systematic riskthe portion of risk that cannot be eliminated through diversification. The CAPM formula is ERi Rf i ERm - Rf.

of a security measures its:

A Total risk (standard deviation).

B Diversifiable (unsystematic) risk.

C Non-diversifiable (systematic) risk relative to the market.

D Expected return.

E Idiosyncratic variance.

Practice Next

More Research Questions

It enables the computer to connect to other computers.
When changes in data across multiple lists are not synchronized, it leads to:
Verification based on login id and password is called as?
Which of the following is used by the browser to connect to the location of the Internet resources?
The Internet utilizes the TCP/IP protocol and is accessed using a computer modem or network that is connected through an ISP . What is th...
When we say “to boot a computer”, what does it mean?
The smallest resolvable part of the screen is ____
Which of the following statements is true regarding the print quality of impact printers?
What type of graphical model is used to define a database?
EDVAC stands for_______

In the Capital Asset Pricing Model (CAPM), the beta (β)

Solution