Correct Answer: C

Beta is the measure of systematic risk (also called market risk or non-diversifiable risk). It indicates how sensitive a stock or portfolio is to market-wide movements. A beta of 1 means the asset moves in line with the market. A beta greater than 1 means it is more volatile than the market, and less than 1 means it is less volatile. Alpha, on the other hand, measures excess return over a benchmark, not systematic risk.