An Analyst Computes a Beta Coefficient with a Low Standard

question 37

Multiple Choice

An analyst computes a beta coefficient with a low standard error. This implies that

• A)this particular beta is more reliable than most.
• B)this particular beta has little meaning.
• C)too few observations were used to compute this particular beta.
• D)this stock responds less to market changes than most stocks.

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Definitions:

Criterion-referenced Scale

An assessment tool that measures an individual's performance against a predefined set of criteria or standards rather than compared to other individuals.

Individual's Ability

The capability or skill possessed by a person to perform a specific task or activity.

Measures

Tools or instruments used in research to quantify or qualify variables of interest.

Coefficient Alphas

A statistical measure used to assess the reliability or internal consistency of a test or scale.