A Stock's Beta Is More Relevant as a Measure of Risk

question 26

True/False

A stock's beta is more relevant as a measure of risk to an investor who holds only one stock than to an investor who holds a well-diversified portfolio.

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Definitions:

Nature

The inherent qualities or characteristics of a person or thing; also refers to the physical world and its biological processes.

Interests

The stakes or investments that individuals or groups have in a particular issue, outcome, or situation.

Personal Intervention

Direct and personal involvement in attempting to alter a situation or outcome.

Morphogenesis

The biological process that causes an organism to develop its shape and structure.