The amount of systematic risk present in a particular risky asset, relative to the systematic risk present in an average risky asset, is called the particular asset’s:

a.beta coefficient.
b.reward-to-risk ratio.
c.total risk.
d.diversifiable risk.
e.Treynor index

Respuesta :

Answer:   Option A          

             

Explanation: For finance, an investment's beta (β or beta coefficient) is a measure of risk as opposed to idiosyncratic variables resulting from vulnerability to current market fluctuations.

The financial assets ' equity pool has a beta of precisely 1. A beta under 1 may imply either a less volatility in investment than the market, or a volatile portfolio whose price changes are not closely linked to the industry.Beta is relevant because it calculates the risk of a diversification-free investment.

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