CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Which of the following is a misconception about beta?
A. Beta can be viewed as a standard measure of systematic risk.
B. Beta is the relevant measure of risk in the CAPM and is equivalent to unsystematic risk.
C. Beta is defined as the covariance between the security or portfolio and the market portfolio divided by the variance of the market portfolio.
Explanation: Beta measures systematic (not unsystematic) risk.

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