A Higher ________ Means That an Asset's Return Is More

question 133

Multiple Choice

A higher ________ means that an asset's return is more sensitive to changes in the value of the market portfolio.

• A)alpha
• B)beta
• C)CAPM
• D)APT

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Definitions:

Written Agreement

A contract or agreement that has been documented and signed in written form, providing a tangible record of the terms and conditions agreed upon.

Partnership

This refers to a formally established way of doing business that involves two or more participants jointly managing the operation and dividing the profits.

Articles of Incorporation

Legal documents filed with a governmental entity to legally document the creation of a corporation, outlining key details such as the company's name, purpose, and structure.

Limited Partnership

A partnership structure with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only up to the amount of their investment.