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Which One of the Following Statements Is TRUE

question 18

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Which one of the following statements is TRUE?


Definitions:

Index Model

In finance, it is a statistical model used to describe the performance of an asset or portfolio relative to a particular benchmark or market index.

Covariance

A measure of how two securities move together, used to assess the degree to which they co-vary.

Assets GM and GE

Refers to the tangible and intangible items owned by General Motors (GM) and General Electric (GE) that are used in their operations to generate revenue.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

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