Beta Is Defined As

question 82

Multiple Choice

Beta is defined as:

• A) a measure of volatility of a security's returns relative to the returns of a broad-based market portfolio of securities.
• B) the ratio of the variance of market returns to the covariance of returns on a security with the market
• C) the inverse of the slope of the security regression line
• D) all of the above

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Definitions:

Total Revenue

Total Revenue refers to the total receipts from sales of goods or services.

Economic Profit

The profit a business makes after deducting both its explicit and implicit costs, including opportunity costs.

Normal Rate of Return

The standard profit or return that is anticipated on an investment, considering the levels of risk and market conditions.

Computer Software Industry

The sector involved in the development, maintenance, and publication of software that offers different types of services or functions for computer users.