Answer Posted / archit agrawal
Beta in the market measures the risk which cannot be diversified. Normally when you invest in the market you bear two types of risk, systemic risk & diversifiable risk. By being diversified, we can remove one type of risk, but we can't remove systemic risk.
Therefore Beta measure the risk which cannot be diversified.
Beta also measures the correlation between the stock price & stock market.
Is This Answer Correct ? | 2 Yes | 0 No |
Post New Answer View All Answers
Have you faced any failure in life? If yes, how did you overcome it?
Tell something about MGNREGA?
Do you think role of leaders and managers is same?
How can you eradicate poverty? What are the different initiatives of the government in this direction?
What are the assets and liabilities of a bank?
What Is Investment Management System?
What is bandhan bank?
I have qualified in the Axis Bank aptitude.Now my interview is on Nov.So pls tell me what questions are asked in the interview and tell me the reference book for interview in Axis Bank.
Explain the different types of banking software applications are available in this industry?
What Is Capital Gain? Explain Long Term Capital Gains And How Is It Different From Short Term Capital Gains?
What is a listing in BSE?
Will Bankruptcy Affect My Credit?
What can be done to eradicate poverty from the country?
what features you can use to convert data in encrypted form in Tally ERP9?
Tell something about BASEL III Norms?