B) Systematic risk — the sensitivity of an assets returns to market returns. Beta measures how much an asset moves relative to the overall market. Beta > 1 = more volatile than market.

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Beta measures:

A Total risk

B Systematic risk — the sensitivity of an assets returns to market returns

C Unsystematic risk only

D Standard deviation

✓ Correct Answer: Option B

Beta measures how much an asset moves relative to the overall market. Beta > 1 = more volatile than market.

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Beta measures:

✓ Correct Answer: Option B

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