Low beta assets are...
Understand the Problem
The question is asking what low beta assets are compared to a benchmark, suggesting an evaluation of risk in investment assets. The options provided give different perceptions of that risk.
Answer
Less risky than the benchmark.
Low beta assets are less risky than the benchmark.
Answer for screen readers
Low beta assets are less risky than the benchmark.
More Information
Low beta assets are less volatile than the market, implying they carry lower investment risk relative to the market benchmark.
Tips
A common mistake is thinking low beta means low returns; it refers to lower volatility, not necessarily returns.
Sources
- What Beta Means: Considering a Stock's Risk - Investopedia - investopedia.com
- Beta - What is Beta (β) in Finance? Guide and Examples - corporatefinanceinstitute.com
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