The beta coefficient is an index that measures the degree of movement of an asset's return in response to a change in the market return.

Question

Quizplus · Accepted Answer

The statement is true. The beta coefficient is a measure of the sensitivity of an asset's return to changes in the market return. A beta of 1 suggests that the asset will move in line with the market, while a beta greater than 1 implies that the asset will be more volatile than the market, and a beta of less than 1 signifies that the asset will be less volatile than the market.

The Beta Coefficient Is an Index That Measures the Degree