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Which Security Has the Greatest Systematic Risk

Question 94

Multiple Choice

Which security has the greatest systematic risk? A) Z because it has the largest standard deviation. B) X because it has the largest beta coefficient. C) Z because it has a high beta and the largest standard deviation. D) Y because it has the greatest diversifiable risk. E) It is not possible to tell given the information above. Which security has the greatest systematic risk?


A) Z because it has the largest standard deviation.
B) X because it has the largest beta coefficient.
C) Z because it has a high beta and the largest standard deviation.
D) Y because it has the greatest diversifiable risk.
E) It is not possible to tell given the information above.

Correct Answer:

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