Beta Measures

question 33

Multiple Choice

Beta measures:

• A) the ability to diversify risk.
• B) how an asset covaries with the market.
• C) the actual return on an asset.
• D) the standard of the assets' returns.

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Definitions:

Matching Principle

An accounting principle that dictates expenses should be matched with the revenues they help generate, within the same accounting period.

Franchise Arrangements

Agreements where one party (the franchisor) grants another party (the franchisee) the right to use its trademark or brand name and operate a business under its business model.

Exclusive Right

A legal provision granting someone the sole authority to undertake a particular activity or use a specific property.

Franchisor's Name

The legal name of the entity that grants the license to a franchisee for the conducting of a business under the franchisor's trademarks and business model.