In a Single Factor Market Model the Beta of a Share

question 38

Multiple Choice

In a single factor market model the beta of a share ________.

• A)measures the share's contribution to the standard deviation of the market portfolio
• B)measures the share's unsystematic risk
• C)changes with the variance of the residuals
• D)measures the share's contribution to the standard deviation of the share

---

Definitions:

Foreign Currency Transaction

A transaction that is denominated or requires settlement in a foreign currency.

Denominated

Indicates the unit of currency in which a financial transaction or instrument is specified.

FOB

Free On Board (FOB) is an international commerce term used to indicate whether the seller or buyer is responsible for goods damaged or destroyed during shipping, specifying the point at which the risk of loss shifts.

Ownership

The legal right or state of having control over property, assets, or an entity.