Which Two of the Following Determine How Sensitive a Security

question 74

Multiple Choice

Which two of the following determine how sensitive a security is relative to movements in the overall market?
I. the standard deviation of the security
II. correlation between the security's return and the market return
III. the volatility of the security relative to the market
IV. the amount of unsystematic risk inherent in the security

• A)I and III only
• B)I and IV only
• C)II and III only
• D)II and IV only
• E)III and IV only

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Definitions:

False Communication

The act of knowingly transmitting or conveying incorrect information to another party.

False Light

A type of privacy tort that occurs when someone publicly attributes to an individual views or actions that are misleading or false, but not defamatory.

Defamation

The act of damaging someone's good reputation by making false or malicious statements in spoken (slander) or written (libel) form.

Tort Law

A segment of law that addresses, remedies, and compensates for civil wrongs not arising out of contractual obligations.