The Standard Deviation of a Stock's Returns Is Used to Measure

question 45

Multiple Choice

The standard deviation of a stock's returns is used to measure the stock's

• A)volatility.
• B)beta.
• C)Treynor index.
• D)risk-free rate.

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Definitions:

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of goods or services.

Indifference Curves

Graphical representations in microeconomics to illustrate a consumer's preference among different bundles of goods, where each point on the curve represents a combination of goods that provides the same level of utility to the consumer.

Indifference Curves

Curves that represent combinations of various goods or services that provide the same level of satisfaction to a consumer.

Normal Good

A good for which demand increases as the income of consumers increases, showing a direct relationship between income and demand.