What Is the Difference Between a Legend and a Text

question 16

Multiple Choice

What is the difference between a legend and a text label?

• A) Legend identifies unlabeled series in the chart body. Text label does not.
• B) Text label gives a text description of an object. Legend does not.
• C) Legend is placed at the bottom of a chart object. Text label is not so placed.
• D) Text label uses acronyms to mark series in the chart. Legend does not.

---

Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, which is unavoidable through diversification.

Diversified Portfolio

An investment strategy that involves spreading investments among various financial instruments, industries, and other categories to reduce risk.

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets, compensating for the risk of fluctuating market conditions.