Beta measures the ________.

The correct answer is: C. Market risk.

Beta is a measure of the volatility of a stock relative to the market. A stock with a beta of 1 has the same volatility as the market. A stock with a beta of 2 is twice as volatile as the market, and a stock with a beta of 0.5 is half as volatile as the market.

Investors use beta to measure the risk of a stock. A stock with a high beta is considered to be a risky stock, while a stock with a low beta is considered to be a safe stock.

Here is a brief explanation of each option:

• Option A: Investment risk rate. This is not a correct answer because beta measures the market risk of a stock, not the investment risk rate.
• Option B: Financial risk. This is not a correct answer because beta measures the market risk of a stock, not the financial risk.
• Option C: Market risk. This is the correct answer because beta measures the volatility of a stock relative to the market.
• Option D: Market and finance risk. This is not a correct answer because beta measures the market risk of a stock, not the market and finance risk.