Q200
In modern investment analysis, the risk for a stock is related to its_____________.
A.
leverage factor
B.
standard deviation
C.
beta coefficient
AnswerD.
coefficient of variation
Answer: Option C
Solution
Answer: Option C
Solution:
In modern investment analysis, the risk for a stock is related to its beta coefficient. In finance, the beta (β or beta coefficient) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors.