General Studies · Capital Asset Pricing Model
With reference to the Capital Asset Pricing Model (CAPM), consider the following statements: Statement - I: Beta is a measure of a security's risk relative to the risk of the market portfolio. Statement - II: The value of Beta measures both the systematic and unsystematic risks of a security. Which of the statements given above is / are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement - I is incorrect, but Statement - II is correct
- 2Statement - I is correct, but Statement - II is incorrect✓
- 3Both Statement - I and Statement - II are incorrect
- 4Both Statement - I and Statement - II are correct
Correct answer
Statement - I is correct, but Statement - II is incorrect
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