The correct answer is B. beta.
Beta is a measure of a stock’s volatility relative to the market. A beta of 1 means that the stock moves in the same direction as the market, with the same magnitude. A beta of less than 1 means that the stock is less volatile than the market, and a beta of greater than 1 means that the stock is more volatile than the market.
Alpha is a measure of a stock’s performance relative to the market. A positive alpha means that the stock has outperformed the market, and a negative alpha means that the stock has underperformed the market.
Variance is a measure of the dispersion of a set of data points around the mean. A high variance indicates that the data points are spread out over a wide range, while a low variance indicates that the data points are clustered close to the mean.
Market relevance is a measure of how important a stock is to the overall market. A stock with high market relevance is one that is widely held by investors and has a significant impact on the market’s performance.
In conclusion, beta is the correct measure of risk of a stock because it measures the stock’s volatility relative to the market.