As a Measure of Market Risk,the Beta for the S&P

question 31

Multiple Choice

As a measure of market risk,the beta for the S&P 500 is generally considered to be:

• A)-1.0.
• B)1.0.
• C)0.
• D)impossible to determine.

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Definitions:

Subduction

The process by which one tectonic plate moves beneath another plate and sinks into the mantle due to gravitational forces.

Conduction

The process by which heat or electricity is directly transmitted through a substance when there is a difference of temperature or electrical potential.

Subduction Zone

A region where one tectonic plate moves under another, leading to volcanic activity and earthquakes.

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the uppermost part of the mantle, directly involved in plate tectonics and continental drift.