Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)Beta is a measure of systematic risk reflecting the co-movement of the returns on a specific share with returns on shares in the same industry
• B)Beta is a measure of unsystematic risk reflecting the co-movement of the returns on a specific share with returns on shares in the same industry.
• C)Beta is a measure of unsystematic risk reflecting the co-movement of the returns on a specific share with returns on the market portfolio.
• D)Beta is a measure of systematic risk reflecting the co-movement of the returns on a specific share with returns on the market portfolio.

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Definitions:

Self-Serving Bias

A common tendency for individuals to attribute positive outcomes to their own actions and negative outcomes to external factors.

Consensus

A general agreement among a group of people, often achieved through discussion and compromise.

Distinctiveness

The quality or state of being notably different or unique in comparison to others, allowing for recognizable differentiation.

Consistency

The quality of always behaving or performing in a similar way, maintaining a standard.