What Does Beta Measure

question 8

Multiple Choice

What does beta measure?

• A)The amount of business risk the stock is exposed to
• B)The amount of market risk the stock is exposed to
• C)The amount of credit risk the stock is exposed to
• D)The amount of unique risk the stock is exposed to

---

Definitions:

Structures

The arranged and organized systems or frameworks within an organization that determine the manner in which activities are coordinated and directed.

Human Relations

The study and practice of improving interpersonal relationships, especially in a workplace setting, to enhance productivity and job satisfaction among employees.

Organic

Referring to or derived from living matter; in business, it describes growth or processes that occur in a natural, gradual, and continuous manner.

Theorists

Individuals who formulate theories or concepts in a particular field of study or aspect of human behavior.