The Beta for a Security Is an Alternative Way of Representing

question 38

Multiple Choice

The Beta for a security is an alternative way of representing its

• A) standard deviation.
• B) riskfree return.
• C) expected rate of return.
• D) covariance with the market.

---

Definitions:

Depreciable Real Property

Real estate eligible for depreciation for tax purposes, meaning its cost can be deducted over a period of time.

Straight-Line Method

A method of calculating the depreciation of an asset that evenly spreads out its cost over its useful life.

Entertainment Expenses

Costs for business-related entertainment that may be partially deductible under certain conditions.

Listed Property

Assets required to be reported for tax purposes because they have the potential for personal use, such as cars, computers, and real property.