The Beta of a Security Measures Its ________ Due to Market

question 83

Multiple Choice

The beta of a security measures its ________ due to market risk relative to the market as a whole.

• A) return
• B) volatility
• C) profitability
• D) performance

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Definitions:

Inferior Goods

Goods whose demand decreases when consumers' incomes increase, opposite to normal goods.

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Income

The financial gain earned or received over a period of time, typically through employment, investments, or business operations.

Flow Measure

A term used in economics to describe a quantity measured over a specified period of time, such as income per month or spending per year.