Beta Is a Measure of the Extent to Which

question 6

Multiple Choice

Beta is a measure of the extent to which:

• A)the returns on the stock market as a whole change over time.
• B)a security's risk can be eliminated by proper diversification.
• C)the returns on a given stock move with the stock market.
• D)a security's risk can be eliminated by random diversification.

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Definitions:

Written Amounts

Quantitative figures or values that are documented or recorded in written form, especially in financial transactions.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a designated person.

Payable

An amount of money that is owed and should be paid.

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.