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.

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Definitions:

Sacajawea

A Lemhi Shoshone woman who is best known for her role as a guide and interpreter for the Lewis and Clark expedition in the early 1800s.

Lewis and Clark

refers to Meriwether Lewis and William Clark, who led the early 19th-century expedition across the western United States, commissioned by President Thomas Jefferson.

Shoshone Indian

A member of a Native American tribe originally living in the western United States, known for their nomadic lifestyle.

Pacific Ocean

The largest and deepest of the world's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south.