A Stock Return's Beta Measures

question 28

Multiple Choice

A stock return's beta measures

• A)the stock's covariance with the risk-free asset.
• B)the change in the stock's return for a given change in the market return.
• C)the return on the stock.
• D)the standard deviation on the stock's return.

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Definitions:

Criterion Variable

The dependent variable that is predicted or explained by independent variables in a study.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations made to the independent variable.

Predictor Variable

A variable that is used in statistical models to predict the outcome of a response variable.

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between them.