Which One of the Following Measures Systematic Risk

question 82

Multiple Choice

Which one of the following measures systematic risk?

• A)beta
• B)alpha
• C)variance
• D)standard deviation
• E)correlation coefficient

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Definitions:

Probability

The likelihood or chance of an event occurring.

Expected Utility

A theory in economics that explains how people make decisions under uncertainty, based on the anticipated satisfaction or utility from outcomes.

Risk-averse

A description of an individual or entity that prefers to avoid risk, often opting for the less risky of available options.

Probability

A measure of the likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.