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Asset beta

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Asset beta

  • This topic has 3 replies, 3 voices, and was last updated 10 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 5, 2015 at 3:27 pm #253645
    AvatarDushyan
    Member
    • Topics: 37
    • Replies: 44
    • ☆☆

    is asset beta = business risk + financial risk?

    and

    total risk = systematic + unsystematic risk?

    June 5, 2015 at 4:24 pm #253688
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    The asset beta measures the business risk (it is equity beta that measures business + financial)

    Yes – the total risk is systematic + unsystematic.

    June 7, 2015 at 3:10 pm #254805
    AvatarGvtftf
    Member
    • Topics: 25
    • Replies: 698
    • ☆☆☆☆

    Yeah, this mcq is from exam..the statement was that asset beta measures only business risk and it was true

    June 7, 2015 at 4:13 pm #254826
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    If that was the question, then yes – it is true 🙂

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