Asked by
Adira Whipple
on Oct 20, 2024
Verified
A stock has a beta of 1.3. The systematic risk of this stock is ________ the stock market as a whole.
A) higher than
B) lower than
C) equal to
D) indeterminable compared to
Systematic Risk
The risk inherent to the entire market or a segment thereof, also known as market risk, which cannot be eliminated through diversification.
Stock Market
A public market for buying, selling, and trading stocks (shares) of publicly-held companies.
- Interpret the implications of beta in assessing systematic risk.
Verified Answer
CH
Learning Objectives
- Interpret the implications of beta in assessing systematic risk.