Beta Is ________

question 51

Multiple Choice

Beta is ________.

• A)a measure of systematic risk
• B)a measure of nondiversifiable risk
• C)the appropriate measure of risk for a well-diversified portfolio
• D)all of the above

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Definitions:

Companies

Legal entities formed of individuals, shareholders, or members, aimed at operating for profit.

Excess Return

The return on an investment that exceeds the risk-free rate or a comparative benchmark or index.

Merger

A corporate strategy of combining distinct businesses under a single entity to enhance competitiveness and efficiency.