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A Stock's Beta Measures Its Diversifiable Risk Relative to the Diversifiable

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A stock's beta measures its diversifiable risk relative to the diversifiable risks of other firms.


Definitions:

Diatoms

Single-celled, photosynthetic protists with a two-part silica shell.

Amoebozoans

A group of amoeboid protozoa, including amoebas, characterized by their ability to change shape due to the movement of their pseudopodia.

Dictyostelium

A genus of slime molds that are used as model organisms in molecular biology and genetics.

Mitochondria

The organelles within cells that generate most of the cell's supply of ATP, used as a source of chemical energy, and involved in a range of other processes including signaling and cellular differentiation.

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