CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

Market or beta risk is:

A. Risk not considering the effects of diversification.
B. Risk an asset would have if the firm owned only one asset and the investors owned only the stock of the firm.
C. Risk that cannot be eliminated by diversification.
D. Risk that is measured by the standard deviation of asset's returns.
Correct Answer: C

Market risk cannot be eliminated by diversification and is measured by the project's beta coefficient.

User Contributed Comments 1

User Comment
sarath Market risk is non-diversifiable or systematic risk.
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