Beta May Be Defined As

question 58

Multiple Choice

Beta may be defined as:

• A) the measure of systematic risk.
• B) a risk measure of a portfolio.
• C) the ratio of the variance of the portfolio to the variance of the market.
• D) all of the above

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Definitions:

Inputs Prices

Prices of goods or services that are used in the production of other goods or services.

Profit-maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Least-cost Combination

An economic principle where businesses aim to produce a given level of output at the minimum possible cost by appropriately combining resources.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or provide services.