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Question 11 (0.2 points) Which one of the following measures the amount of systematic risk present in a particular risky asse

Which one of the following measures the amount of systematic risk present in a particular risky asset relative to that in an average risky asset? 

1) Standard deviation 

2) Squared deviation 

3) Beta coefficient 

4) Mean 

5) Variance

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Answer #1

Beta coefficient is a measure of an investment's systematic risk while the standard deviation is a measure of an investment's total risk.

So systematic risk is defined by Beta of the Security

Option 3 is correct.

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