Multiple Choice
Which of the following is true regarding the beta coefficient?
A) It is a measure of unsystematic risk.
B) A beta greater than one represents lower systematic risk than the market.
C) Generally speaking, the higher the beta the higher the expected return.
D) A beta of one indicates an asset is totally risk-free.
E) The risk premium of an asset will increase if the beta of that asset decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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