Beta Can Be Defined as the Slope of the Line

question 1

Multiple Choice

Beta can be defined as the slope of the line that explains the relationship between

• A) the return on a security and the return on the market.
• B) the returns on a security and various points in time.
• C) the return on stocks and the returns on bonds.
• D) the risk free rate of return versus the market rate of return.

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