A Stock's Beta Is More Relevant as a Measure of Risk

question 120

True/False

A stock's beta is more relevant as a measure of risk to an investor who holds only one stock than to an investor who holds a well-diversified portfolio.

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Definitions:

D-aldopentoses

A type of sugar containing five carbon atoms, including an aldehyde group at the first carbon.

D-aldotetrose

A simple sugar (tetrose) in the D-configuration with an aldehyde group, part of the carbohydrate family.

Ruff Degradation

A chemical process used to convert monosaccharides into smaller sugars or alditols.

Optically Active

Refers to a substance that can rotate the plane of polarized light, indicating chiral molecules not superimposable on their mirror image.