In the Capital Asset Pricing Model, the Beta Coefficient Is

Multiple Choice

In the capital asset pricing model, the beta coefficient is a measure of ________ risk and an index of the degree of movement of an asset's return in response to a change in ________.

A) diversifiable; the prime rate
B) nondiversifiable; the Treasury bill rate
C) diversifiable; the bond index rate
D) nondiversifiable; the market return