A Stock's Beta Is a Measure of Its

question 43

Multiple Choice

A stock's beta is a measure of its

• A) systematic risk.
• B) unsystematic risk.
• C) company-specific risk.
• D) diversifiable risk.

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Definitions:

Dealer

An individual or firm in the financial services industry who buys and sells securities for their own account, whether through a broker or otherwise.

Buy and Sell

The basic actions in trading and investing where "buy" refers to acquiring an asset, and "sell" indicates disposing of an asset.

Bid-Asked Spread

The difference between the highest price a buyer is willing to pay for an asset and the lowest price a seller is willing to accept.

Broker's Commissions

Fees charged by a broker for executing transactions or providing specialized services.