A Stock's Beta Is More Relevant as a Measure of Risk

question 120

True/False

A stock's beta is more relevant as a measure of risk to an investor who holds only one stock than to an investor who holds a well-diversified portfolio.

---

Definitions:

Host-Country Nationals

Employees who are citizens of the country in which a multinational corporation's branch or subsidiary is located.

Home-Country Nationals

Employees who are working in a branch of their company or a government's embassy that is located in a foreign country but are citizens of the country where the company's headquarters or government is based.

Third-Country Nationals

Employees who are natives of a country other than the home country or the host country.