An Ethics Audit Is Much Broader Than a Social Audit

question 12

True/False

An ethics audit is much broader than a social audit. ​

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Definitions:

Beta Coefficient

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

Nonsystematic Variance

The variability in a security's or a portfolio's returns that is not related to overall market movements.

Market Index

A method or metric to measure the performance of a group of stocks, representing a particular market or sector, to give investors a snapshot of its overall health.

Active Portfolio

An investment strategy where the portfolio manager makes specific investments with the goal of outperforming an investment benchmark index.