The Market Risk, Beta, of a Security Is Equal to

question 21

Multiple Choice

The market risk, beta, of a security is equal to

• A) the covariance between the security's return and the market return divided by the variance of the market's returns.
• B) the covariance between the security and market returns divided by the standard deviation of the market's returns.
• C) the variance of the security's returns divided by the covariance between the security and market returns.
• D) the variance of the security's returns divided by the variance of the market's returns.

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Definitions:

Revenue In Full

The total amount of income generated by the sale of goods or services before any deductions are made.

Percentage-Of-Completion

An accounting method that recognizes revenues and expenses in proportion to the completion of a contracted work or project.

Economic Substance

The underlying economic reality of a transaction which determines its legal and tax implications, regardless of its form.

Inventory Value

The total cost assigned to goods and materials held in stock by a business at a specific point in time.