Question:medium
The index, such as Nifty 50, typically has a beta of _____
The index, such as Nifty 50, typically has a beta of _____
Show Hint
Market indices like Nifty 50 have a beta of 1, representing average market risk.
Updated On: Jan 14, 2026
- 0.5
- 1
- 1.5
- 2
Show Solution
The Correct Option is B
Solution and Explanation
In financial analysis, beta quantifies a security's or portfolio's volatility or systematic risk relative to the broader market.
An index such as the Nifty 50, by definition, is assigned a beta of 1 as it mirrors the overall market or a significant market segment.
- A beta of 1 indicates that the index's price movements align with market trends. - Securities with a beta exceeding 1 exhibit greater volatility than the market. - Securities with a beta below 1 demonstrate lower volatility compared to the market.
An index such as the Nifty 50, by definition, is assigned a beta of 1 as it mirrors the overall market or a significant market segment.
- A beta of 1 indicates that the index's price movements align with market trends. - Securities with a beta exceeding 1 exhibit greater volatility than the market. - Securities with a beta below 1 demonstrate lower volatility compared to the market.
Was this answer helpful?
0
Top Questions on Financial Markets
- Differentiate between ‘Capital Market’ and ‘Money Market’ on the basis of the following :
(i) Participants
(ii) Instruments
(iii) Duration
- CBSE Class XII - 2026
- Business Studies
- Financial Markets
- State any three protective functions of Securities and Exchange Board of India (SEBI).
- CBSE Class XII - 2026
- Business Studies
- Financial Markets
- State any three objectives of Securities and Exchange Board of India.
- CBSE Class XII - 2026
- Business Studies
- Financial Markets
- State any three points of differences between ‘Primary Market’ and ‘Secondary Market’.
- CBSE Class XII - 2026
- Business Studies
- Financial Markets
- Want to practice more? Try solving extra ecology questions todayView All Questions
