To estimate the responsiveness of a particular equity portfolio to the overall market, a trader should use the portfolio’s

To estimate the responsiveness of a particular equity portfolio to the overall market, a trader should use the portfolio’s
A . Alpha
B . Beta
C . CVaR
D . VaR

View Answer

Answer: B

Explanation:

Beta measures the responsiveness of a particular equity or equity portfolio to the overall market.

It captures the correlation between the returns of the equity portfolio and the market returns, indicating how much the portfolio’s value changes in response to market movements.