Beta Measure Risk by Comparing the Returns of an Individual

question 164

Multiple Choice

Beta measure risk by comparing the returns of an individual stock to the returns of

• A)competitors.
• B)DJIA.
• C)S&P 500.
• D)treasury bills.

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Definitions:

Imports

Goods and services brought into a country from abroad for sale.

Exports

Domestically produced goods and services sold in other countries.

Comparative Advantage

A theory in economics that suggests a country should specialize in producing and exporting goods in which it has a lower opportunity cost than its trading partners.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors when using the same amount of resources.