Q809
In an individual stock, relevant risk is classified as
A.
alpha coefficient
B.
beta coefficient
AnswerC.
stand-alone coefficient
D.
relevant coefficient
Answer: Option B
Solution
Answer: Option B
Solution:
In an individual stock, relevant risk is classified as beta coefficient. 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.