If you find a beta that is greater than 1, it implies the asset has Select one:

Question

If you find a beta that is greater than 1, it implies the asset has

Select one:

a. less systematic risk than the overall market

b. more systematic risk than the overall market

c. more unsystematic risk than the overall market

d. less unsystematic risk than the overall market

e. the same risk as a U.S. Treasury bill with less than one year to maturity

When using the Capital Asset Pricing Model (CAPM), you are determining

Select one:

a. Expected Return

b. Beta

c. Duration

d. Interest Rate

e. Capital Gains

Explanation / Answer

1)correct option is "B" -more systematic risk than the overall market

If the beta of asset is more than beta of market (which is 1 ),the asset is more risky han market .Beta is a measure of non diversifiable or systematic risk .

2)correct option is A"-expected return

CAPM model is used to determine the expected return on stock .

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