Which of the Following Does NOT Describe Beta

question 15

Multiple Choice

Which of the following does NOT describe beta?

• A) A measure of the sensitivity of the return on an asset to the return on an index
• B) The slope of the best fit line when the return on an asset is regressed against the return on the market
• C) The hedge ratio necessary to remove market risk from a portfolio
• D) Measures correlation between futures prices and spot prices for a commodity

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Definitions:

Health Program

A planned set of activities aimed at promoting physical and mental well-being and preventing illness.

Theory Of Reasoned Action

Fishbein and Ajzen’s theory of the relationship between attitudes and behaviour. A specific attitude that has normative support predicts an intention to act, which then predicts actual behaviour.

Person's Behaviour

The actions or reactions of an individual in response to external or internal stimuli.

Intentions To Act

The motivational factors that influence an individual's decision to engage in a particular behavior, strongly predicting the likelihood of performing the behavior.