Beta May Be Defined As

question 58

Multiple Choice

Beta may be defined as:

• A) the measure of systematic risk.
• B) a risk measure of a portfolio.
• C) the ratio of the variance of the portfolio to the variance of the market.
• D) all of the above

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Definitions:

Completing the Square

A method used in algebra to solve quadratic equations by converting the equation into a perfect square trinomial form.

Perfect Square Trinomial

A polynomial of the form \(a^2 + 2ab + b^2\) or \(a^2 - 2ab + b^2\), where the square of the first term plus/minus twice the product of the first and second term plus the square of the second term.

Real Solutions

The solutions of an equation that result in real numbers.

Complex Solutions

Solutions to equations that include imaginary numbers, indicating values that cannot be found on the real number line.