- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 53. Portfolio Risk and Return: Part II
- Subject 3. The Capital Asset Pricing Model
CFA Practice Question
Beta can be viewed as ______.
A. the covariance of an asset with the market portfolio
B. the correlation coefficient with the market portfolio
C. a measure of unsystematic risk
Explanation: Beta is a standardized measure of risk because it relates a particular covariance to the variance of the market portfolio.
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