Examveda
Examveda

Beta coefficient is used to measure market risk which is an index of

A. coefficient risk volatility

B. market risk volatility

C. stock market volatility

D. portfolio market portfolio

Answer: Option C

Solution(By Examveda Team)

Beta coefficient is used to measure market risk which is an index of stock market volatility. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a "volatile" market.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process