By Definition,which of the Following Is Correct Regarding the Beta

question 72

Multiple Choice

By definition,which of the following is correct regarding the beta of the market?

• A)The market beta will depend on the composition of the market portfolio and could be greater than or less than 1.
• B)The market beta will be less than 1 as the market portfolio is generally more diversified than an individual's portfolio.
• C)The market beta will be equal to 1 given that it is the portfolio containing all assets.
• D)The market beta will be great than 1 as the market portfolio is generally more diversified than an individual's portfolio.B

---

Definitions:

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from the total revenue, representing the profit made before deducting operating expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for operating expenses, interest, and taxes.

Merchandising Business

A type of business that purchases goods at wholesale prices and sells the same goods at retail prices to end-users or customers.

Financial Statements

Formal records that outline the financial activities and conditions of a business, organization, or individual, often including the balance sheet, income statement, and cash flow statement.