n NISM Certifications
V-A NISM Series V-A
Medium

Identify the TRUE statements: (A) Unsystematic risk is measured by its Beta (B) The diversified stock index has a Beta of 1 (C) An investment with a beta of 0.7 will move 7 percent when markets move by 10 percent

Practice question from NISM Series V A - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    a and b are true

  2. b and c are true

    Correct answer

  3. C

    a and c are true

  4. D

    Only b is true

Why this is the answer

Beta measures systematic risk, not unsystematic risk.

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