A Property of Measurement in Which Objects That Are Different

question 6

Multiple Choice

A property of measurement in which objects that are different receive different scores is

• A)identity.
• B)magnitude.
• C)equal unit size.
• D)absolute zero.

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Definitions:

Beta

An assessment tool for determining the comparative volatility or systematic risk of a portfolio or security against the market at large.

Volatility

Volatility is a statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average over a certain period.

CAPM

The Capital Asset Pricing Model is a formula used to determine the expected return on an investment, factoring in its risk compared to the market.

Required Return

The smallest yearly percentage gain from an investment necessary to entice people or corporations to invest in a certain security or endeavor.