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Exam CIFC Topic 1 Question 131 Discussion

Actual exam question for IFSE Institute's CIFC exam
Question #: 131
Topic #: 1
As a measurement of risk, which of the following statements about beta is TRUE?

Suggested Answer: B Vote an answer

Explanation
Beta is a relative measure that compares how an investment reacts to movements in a specific index. A beta of
1 means that the investment moves in sync with the index. A beta greater than 1 means that the investment is more volatile than the index. A beta less than 1 means that the investment is less volatile than the index.
References: Investment Funds in Canada (IFC) | Canadian Securities Institute

by Maurice at Apr 28, 2024, 10:49 AM

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