The Market (Systematic)risk Associated with an Individual Shares Is Most

question 92

Multiple Choice

The market (systematic) risk associated with an individual shares is most closely identified with the

• A)variance of the returns of the shares.
• B)variance of the returns of the market.
• C)beta of the shares.
• D)standard deviation of the shares.

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Definitions:

Acid-test Ratio

A stringent indicator that determines whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts due within a year, determined by dividing its current assets by its current liabilities.

Marketable Securities

Financial instruments and assets that are easily liquidable and can be converted into cash quickly at a reasonable price.

Sales on Account

Revenues generated from sales where payment is deferred to a later date.