Which of the Following Is a Reason for Beta Being

Multiple Choice

Which of the following is a reason for beta being considered as a relevant measure risk,instead of variance?

A) The marginal variance determines the incremental risk from adding a small amount of the investment to the portfolio.
B) The total variance determines the incremental risk from adding a small amount of the investment to the portfolio.
C) The total variance of the asset added determines the total risk of the portfolio.
D) The marginal risk of the portfolio is unaffected by the variance in the returns of the individual assets in the portfolio.