Market beta(β)=1 indicates asset’s systematic risk:

Market beta(β)=1 indicates asset’s systematic risk:

Market beta(β)=1 indicates asset’s systematic risk:

A. Higher than overall market average risk

B. Equal to market portfolio average risk

C. Zero systematic risk

D. No unsystematic risk at all

Answer: B

Rationale: β=1 matches market risk; β>1 higher market risk; β<1 lower market systematic risk.