Q789
Coefficient of beta is used to measure stock volatility
A.
coefficient of market
B.
relative to market
AnswerC.
irrelative to market
D.
same with market
Answer: Option B
Solution
Answer: Option B
Solution:
Coefficient of beta is used to measure stock volatility relative to market. A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. In statistical terms, beta represents the slope of the line through a regression of data points from an individual stock's returns against those of the market.