When One Variable Directly or Indirectly Influences the Level of a Second

question 46

Multiple Choice

When one variable directly or indirectly influences the level of a second variable, that variable is considered a______________ of the relationship.

• A) Moderator
• B) Mediator
• C) Cause
• D) Correlate

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Definitions:

Beta

A quantification of the risk and fluctuations experienced by a security or portfolio when compared to the general market.

Treynor Measure

A performance metric for determining how well an investment compensates the investor for taking a particular level of risk, accounting for systematic risk.

Standard Deviation

A statistical measure that represents the dispersion or variance in a set of data points, used in finance to measure the volatility of investment returns.

Beta

Beta is a measure of an investment's volatility and systemic risk compared to the overall market.