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:

Management Function

The organizational activities of planning, organizing, leading, and controlling to achieve goals efficiently and effectively.

Chain Of Command

The formal line of authority within an organization, defining who reports to whom, from the highest levels of leadership down to frontline employees.

Small Businesses

Enterprises or firms with limited revenue, employees, or resources, often characterized by independent ownership and operation.

Microbusinesses

Very small enterprises typically characterized by having fewer than 10 employees and operating with minimal capital investment.