You run a regression for a stock's return on a market index and find the following Excel output:


This stock has greater systematic risk than a stock with a beta of ________.

A) .50
B) 1.5
C) 2
D) 3

Systematic Risk

Systematic risk refers to the risk inherent to the entire market or market segment, often influenced by factors like economic, political, and social changes.

Beta

A measure of the volatility or systematic risk of a security or a portfolio compared to the market as a whole.