The beta coefficient of a stock is reflected in the slope of its characteristic line.

Name: The beta coefficient of a stock is reflected in the slope of its characteristic line.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

This is a true statement. The characteristic line is a graphical representation of the linear relationship between the stock's returns and the returns of the market as a whole. The slope of this line represents the stock's beta coefficient, which measures the stock's volatility relative to the market.

The Beta Coefficient of a Stock Is Reflected in the Slope