A Stock's Beta Measures The

question 56

Multiple Choice

A stock's Beta measures the:

• A)average return on the stock.
• B)variability in the stock's returns compared to that of the market portfolio.
• C)difference between the return on the stock and return on the market portfolio.
• D)market risk premium on the stock.

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Definitions:

Dividend Income

Income received from owning shares in a company, typically paid out from the company's earnings to its shareholders at set intervals.

Other Comprehensive Income

Revenues, expenses, gains, and losses that are not included in net income but affect a company's equity, including items like foreign currency items and unrealized gains on securities.

Statement Of Income

A financial report that shows a company's revenues, expenses, and profits over a specific period, typically a quarter or year, also known as an income statement.

Unrealized Gains

Increases in the value of assets that a company holds which have not yet been sold and thus not "realized."