The Variable Beta

question 34

Multiple Choice

The variable beta

• A)measures the degree of liquidity in a portfolio.
• B)is the responsiveness of a stock's expected return to changes in the value of the complete market portfolio.
• C)measures the degree of idiosyncratic risk in the complete market portfolio.
• D)is always less for an individual portfolio than for the complete market portfolio.

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Definitions:

Macroevolution

Large-scale evolutionary changes that occur over geological time, leading to the emergence of new species and the extinction of others.

Evolutionary Changes

The alterations in the genetic makeup of populations over time, leading to the diversity of organisms found on Earth.

Species

An assembly of life forms made up of alike members that can interchange genes or mate with each other.

Microevolution

Evolutionary changes within a species or small group of organisms, particularly over a short period.