A Security's Beta (Also Called Beta Weight)is a Statistic That

question 84

Multiple Choice

A security's beta (also called beta weight) is a statistic that measures

• A)the responsiveness of its return over time to returns of the overall market.
• B)its degree of random risk.
• C)the range of its returns over a period of time.
• D)its risk in relation to a risk-free asset.

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Definitions:

Overhead Expenses

The ongoing expenses associated with running a business that are not directly tied to the production of goods or services.

Mark-up

An extra charge applied to the base cost of products to accommodate for overheads and earnings, culminating in the final asking price.

Selling Price

The amount of money for which an item or service is sold to the buyer.

Operating Expenses

Operating expenses are the costs associated with running a business's core operations on a daily basis, including rent, utilities, and payroll.