Which of the Following Does NOT Describe Beta

question 12

Multiple Choice

Which of the following does NOT describe beta?

• A) A measure of the sensitivity of the return on an asset to the return on an index
• B) The slope of the best fit line when the return on an asset is regressed against the return on the market
• C) The hedge ratio necessary to remove market risk from a portfolio
• D) Measures correlation between futures prices and spot prices

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Definitions:

Cessation

The process of ending or being brought to an end, commonly used in the context of stopping a behavior or activity, such as smoking cessation.

Ovulation

The phase of the menstrual cycle during which a mature egg is released from the ovary, making it available for fertilization.

Bachelor's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).

Associate's Degree

A two-year post-secondary degree awarded by community colleges, junior colleges, technical colleges, and some four-year institutions.