The Market -Beta of a Stock

question 57

Multiple Choice

The market -beta of a stock

• A)reflects the degree to which the stock's return varies with the company's earnings per share.
• B)depicts the relationship between a stock's expected return and its risk as measured by its standard deviation.
• C)reflects the degree to which the stock's return moves with the return on a market index.
• D)reflects the degree to which the stock's return varies with inflation.

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Definitions:

Calculate

The process of determining the numerical value or result, often by mathematical means.

Evaluate

To establish or assess the worth or quantity of; evaluate.

Calculate

To calculate the quantity or count of an item using mathematical methods.

Simplify

To make something less complex or easier to understand, often used in the context of reducing mathematical expressions.