n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is true about 'Beta' in CAPM?

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

Options

  1. Beta measures the security's sensitivity to market movements

    Correct answer

  2. B

    Beta is always greater than 1 for risk-free securities

  3. C

    Beta indicates the security's dividend payout ratio

  4. D

    Beta is the same as alpha

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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