The amount of systematic risk present in a particular risky asset relative to that in an average risky asset is called the:

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BlackTom AI · Accepted Answer

The question asks about the measure of systematic risk of a specific risky asset relative to an average risky asset. 
Option 1: asset mean. The mean (expected return) tells us about the average level of returns, not about risk relative to the market, so this does not describe systematic risk. 
Option 2: market risk premium. This is the extra return expected from holding the market portfolio over a risk-free asset, not a measure of an individual asset's systematic risk level. 
Option 3: security's alpha. Alpha represents abnormal return after adjusting for risk (the portion of return not explained by the market), not a direct gauge of systematic risk itself. 
Option 4: beta. Beta is the sensitivity of an asset's returns to movements in the overall market; it quantifies systematic (market) risk relative to an average asset. This aligns with the concept of comparing systematic risk levels. 
Option 5: standard deviation. Standard deviation measures total risk (volatility) of an asset, including both systematic and unsystematic components, rather than strictly systematic risk relative to the market. 
In summary, beta is the correct descriptor for an asset’s systematic risk relative to the market, while the other options pertain to different aspects of return or risk.

The amount of systematic risk present in a particular risky asset relative to that in an average risky asset is called the: Single choice

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