SIE Exam Practice Question 944
Question: 944
Which of the following is/are correct regarding beta?
(1) It is used to measure the amount of unsystematic risk in an investor's portfolio.
(2) A portfolio's beta can be positive or equal to zero, but cannot be negative.
Correct Answer: D
Explanation:
Beta is used to measure the amount of systematic risk in an investor's portfolio. A portfolio's beta can be positive, negative, or equal to zero.
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