Which of These Is the Measurement of Risk for a Collection

question 51

Multiple Choice

Which of these is the measurement of risk for a collection of stocks for an investor?

• A) beta
• B) efficient market
• C) expected return
• D) portfolio beta

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Definitions:

Adjusted Basis

is the original cost of a property adjusted for factors such as depreciation or improvements, used to calculate capital gains or losses.

Non-recognition of Gain

A tax principle that allows taxpayers to defer recognition of capital gains taxes if the gains are reinvested in similar property or under certain qualifying exchanges.

Involuntary Conversion

Involuntary Conversion is the process where property or an asset is destroyed, stolen, confiscated, or condemned, and the owner receives compensation, such as insurance proceeds or condemnation awards.

Gain

An increase in wealth, income, or value, often realized from investments or sales of assets.