Chartered Investment Manager (CIM) Practice Exam · Question
According to the Capital Asset Pricing Model (CAPM), what does 'beta' measure?
In the CAPM, beta is a measure of an asset's systematic risk – its sensitivity to overall market movements – and indicates how much an asset's price tends to mo
Start free practice for Chartered Investment Manager (CIM) Practice Exam
399 questions · no signup required · 40 free questions per day
Question: According to the Capital Asset Pricing Model (CAPM), what does 'beta' measure?
Answer options:
- The total risk of an asset.
- The asset's correlation with inflation. ✅ The systematic risk of an asset relative to the market.
- The asset's unique, unsystematic risk.
Correct answer: The systematic risk of an asset relative to the market.
Explanation: In the CAPM, beta is a measure of an asset's systematic risk – its sensitivity to overall market movements – and indicates how much an asset's price tends to move with the market.
Start free practice for Chartered Investment Manager (CIM) Practice Exam
399 questions · no signup required · 40 free questions per day
More about Chartered Investment Manager (CIM) Practice Exam
Related Questions
- Strategic asset allocation is:
- Modern Portfolio Theory introduced by:
- A client approaches you, a CIM-credentialed portfolio manager, wanting to understand the true cost of their mu
- Duration measures bond sensitivity to:
- Which of the following is an example of an alternative investment?
- An investment advisor's foremost duty to a client is to act in their best interest, placing the client's inter
More for Chartered Investment Manager (CIM) Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Chartered Investment Manager (CIM) Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.