Question

The beta coefficient:________________________. a) is a standardized measure of the risk per unit of return. b) measures the tendency of two stocks’ returns to move together. c) is a metric that shows the extent to which a given stock’s returns move up and down with the stock market portfolio. d) measures that part of a security’s risk associated with random events that can be eliminated by proper diversification. e) is a metric that shows the tendency of a given stock’s returns to move up and down with government bon

Answer 1

Answer:

A metric that shows the extent to which a given stock's return move up and down with the stock markets portfolio.

Explanation:

The beta coefficient is a metric that shows the extent to which a given stock's return move up and down with the stock markets portfolio.