Which of these is 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 is a measure of the sensitivity of a stock or portfolio to market risk. It measures the extent to which the stock's returns move up and down with the market as a whole. A beta of 1 indicates that the stock's returns move in line with the market, while a beta greater than 1 indicates higher volatility than the market and a beta less than 1 indicates lower volatility than the market.

Which of These Is a Measure of the Sensitivity of a Stock