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

question 69

True/False

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:

Spaghetti Consumption

The amount of spaghetti consumed over a certain period, often used to measure food consumption patterns or preferences.

Consumption

The use of goods and services by households or individuals, often regarded as the final purpose of economic activity.

Utility Function

A mathematical representation that ranks individuals' preferences for sets of goods or outcomes, where higher values imply higher preference levels.

Consumptions

The act of using goods and services by households or individuals, leading to the satisfaction of their needs and wants.