n NISM Certifications
XXI NISM Series XXI-A
Medium

The beta coefficient of a security measures:

Practice question from NISM XXI A for PMS - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The total risk of the security

  2. The systematic risk relative to the market

    Correct answer

  3. C

    The unsystematic risk of the security

  4. D

    The dividend payout ratio

Why this is the answer

Beta indicates how much a security's returns move with the market.

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