Beta is defined as:
A)a measure of volatility of a security's returns relative to the returns of a broad-based market portfolio of securities.
B)the ratio of the variance of market returns to the covariance of returns on a security with the market
C)the inverse of the slope of the security regression line
D)all of these

Question

Quizplus · Accepted Answer

Beta measures the volatility of a security's returns relative to the returns of a broad-based market portfolio, indicating how much the security's price moves in relation to the market.

Beta Is Defined As