Beta Is a Commonly Used Measure Of

question 38

Multiple Choice

Beta is a commonly used measure of:

• A) a stock's dividend yield.
• B) capital gains.
• C) the risk of a stock.
• D) a stock's valuation.
• E) sustainable growth.

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Definitions:

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.