A security with a level of systematic risk the same as that of the market has a beta that is
Question
A security with a level of systematic risk the same as that of the market has a beta that is
Solution
Beta is a measure of a security's systematic risk in relation to the market. If a security has a level of systematic risk the same as that of the market, its beta is 1.
This is because the market itself is used as the benchmark for beta and is always equal to 1. Therefore, if a security's systematic risk is the same as the market, its beta will also be 1.
Similar Questions
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