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Commerce · Q765

Financial Management

Graduate and Post Graduate · Commerce · question 765

Q765

Beta coefficient is used to measure market risk which is an index of

A.
coefficient risk volatility
B.
market risk volatility
C.
stock market volatility
Answer
D.
portfolio market portfolio

Answer: Option C

Solution

Answer: Option C
Solution:
Beta coefficient is used to measure market risk which is an index of stock market volatility. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a "volatile" market.