What Does the "Beta" of an Asset Measure

question 30

Multiple Choice

What does the "beta" of an asset measure?

• A)how the nondiversifiable risk compares with diversifiable risk for an asset
• B)how the expected return compares with the diversifiable risk of a given asset
• C)how the expected return compares with the nondiversifiable risk of the market portfolio
• D)how the nondiversifiable risk of a given asset compares with that of the market portfolio

---

Definitions:

Retain Dyes

The ability of certain cells or structures to hold specific dyes during staining, a technique used in microscopy to enhance visibility and differentiation.

Gastroenteritis

Inflammation of the stomach and intestines, typically caused by infection leading to vomiting and diarrhea.

Tuberculosis

A contagious bacterial infection primarily affecting the lungs, marked by symptoms such as cough, fever, and weight loss.

Whooping Cough

An infectious bacterial disease causing uncontrollable coughing fits and a distinctive "whooping" sound when inhaling.