Which of the Following Is the Best Definition of Beta

question 8

Multiple Choice

Which of the following is the best definition of beta coefficient?

• A) Amount of systematic risk present in a particular risky asset relative to an average risky asset.
• B) Group of assets such as stocks and bonds held by an investor.
• C) The difference between the return on a risky investment and a risk-free investment
• D) Return on a risky asset expected in the future.
• E) Equation of the SML showing the relationship between expected return and beta.

---

Definitions:

Slaves

People who are legally owned by others and are forced to work for them without free will, a condition regarded as property.

English America

The early English colonies and possessions in what is now the United States and parts of Canada.

Rural Communities

Areas characterized by low population density, agricultural or other land-based economic activities, and traditionally, closer social ties and community life.

Poverty

The state of having insufficient financial resources to meet basic living needs such as food, shelter, and healthcare, leading to a lower quality of life.