Explain What Beta Measures and How Investors Can Use Beta

question 78

Essay

Explain what beta measures and how investors can use beta.

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Definitions:

Contract Price

The agreed-upon price for goods or services set forth in a contractual agreement.

Futures Contract

A standardized legal agreement to buy or sell a particular commodity or financial asset at a predetermined price at a specified time in the future.

Futures Contract

A contractual arrangement to purchase or sell a specified asset, like a commodity or financial instrument, at an agreed-upon price on a future date.

Bushels

A unit of volume that is used primarily for measuring quantities of grain.