Beta Measures

question 25

Multiple Choice

Beta measures:

• A)the ability to diversify risk.
• B)how an asset covaries with the market.
• C)the actual return on an asset.
• D)the standard deviation of the assets' returns.
• E)All of the above.

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Definitions:

Investing Transactions

Financial activities related to the acquisition or sale of long-term assets and investments not used in the normal course of business.

Acquisition

The process of obtaining control of another company by purchasing its shares or assets.

Bonds

A form of interest-bearing notes payable issued by corporations, universities, and governmental entities.

Investing Activity

Transactions involving the purchase and sale of long-term assets and other investments not considered as cash equivalents.