Which of the Following Is NOT a Correct Statement Regarding

question 27

Multiple Choice

Which of the following is NOT a correct statement regarding beta?

• A)It is a measure of market risk.
• B)It measures the risk of an individual stock or portfolio relative to the market portfolio.
• C)It is the slope of the capital market line.
• D)It changes through time as the risk of the underlying security or portfolio changes.

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Definitions:

Short Run

In economics, a period during which at least one input, such as plant size, is fixed and cannot be changed.

Doomsday Forecasts

Predictions about catastrophic events that could potentially lead to worldwide devastation or the end of humanity.

Dire Consequences

Serious or catastrophic results that arise from a particular action or set of circumstances.

Earth Day

An annual event aimed at promoting environmental awareness and conservation practices, celebrated on April 22.