A measure of the sensitivity of a stock or portfolio to market risk.
A) behavioral finance
B) beta
C) efficient market
D) hedge

Question

Quizplus · Accepted Answer

Beta measures the volatility or risk of a stock or portfolio in relation to the overall market. It is a popular tool in investment analysis and is used to assess the degree of risk associated with a particular stock or portfolio. Higher beta means the stock or portfolio is more sensitive to market risk, while lower beta indicates lower sensitivity. The other options are not directly related to the measure of risk sensitivity.

A Measure of the Sensitivity of a Stock or Portfolio