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Beta Is the Measure of How Responsive a Stock Is

question 72

True/False

Beta is the measure of how responsive a stock is to changes in the market portfolios,like the S&P 500.


Definitions:

Ratification

The act of officially approving or confirming an agreement or action, making it valid and binding.

Implied Ratification

The acceptance or approval of a previously unauthorized act by behaving in a manner that acknowledges the act as authorized.

Express Ratification

Formal approval or confirmation of an act or agreement, usually explicitly and often in writing, making it officially valid.

Misrepresentation

The act of giving a false or misleading statement about a material fact, often leading to a breach of contract.

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