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Which of the Following Is True of the Global Model

question 44

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Which of the following is true of the global model?


Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates the stock is more volatile than the market.

Expected Return

The average of all possible returns from an investment, weighted by their probabilities.

Market

A venue where goods, services, or financial instruments are exchanged between buyers and sellers, either physically or electronically.

Beta

An indicator of a stock's fluctuation compared to the general market, where a beta above 1 signals increased volatility.

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