Which security has the greatest systematic risk? . Z because it has the largest
ID: 1171318 • Letter: W
Question
Which security has the greatest systematic risk?
.
Z because it has the largest standard deviation.
Y because it has the largest beta coefficient..
Z because it has a high beta and the largest standard deviation.
Y because it has the greatest diversifiable risk.
It is not possible to tell given the information above.
A.Z because it has the largest standard deviation.
B.Y because it has the largest beta coefficient..
C.Z because it has a high beta and the largest standard deviation.
D.Y because it has the greatest diversifiable risk.
E.It is not possible to tell given the information above.
Explanation / Answer
Y has the greateset systematic risk because it has the largest beta coefficient. Beta is a measure of systematic risk, higher the beta higer the systematic risk.
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