Author Question: Which of the following best describes the beta coefficient? (Read 6 times)

mustachegiraffe · **on:** Aug 7, 2023

Question 1

Which asset mix would be the best representation of the true market portfolio?

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bonds, stocks, foreign securities, derivatives, and real estate

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bonds, stocks, foreign securities, and derivatives

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bonds, stocks, and foreign securities

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bonds and stocks

Question 2

Which of the following best describes the beta coefficient?

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A stock’s beta measures its diversifiable (or company-specific) risk relative to the nondiversifiable risks of its bond issues.

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A stock’s beta measures its systematic risk relative to the market portfolio.

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A stock’s beta measures its market risk relative to the unsystematic risks of other firms.

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A stock’s beta measures its unsystematic risk relative to the market portfolio.

spicyzack · **Reply #1 on:** Aug 7, 2023

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