Beta Is ________

question 17

Multiple Choice

Beta is ________.

• A)a measure of systematic risk
• B)a measure of nondiversifiable risk
• C)the appropriate measure of risk for a well-diversified portfolio
• D)All of the above

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Definitions:

Variable Expenses

Costs that change in proportion to the activity or business volume.

Fixed Expenses

Costs that do not change in total despite fluctuations in business activity levels or volume, such as rent or salaries.

Percentage of Sales Approach

A method for forecasting financial needs based on a fixed percentage of projected sales, often used in budgeting and financial planning.

Profit Margin Percentage

A profitability ratio calculated by dividing net income by revenue, expressing the result as a percentage.