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Coefficient of beta is used to measure stock volatility

This question belongs to Commerce Financial Management
Financial Management
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Coefficient of beta is used to measure stock volatility

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Correct Answer: Option B
Coefficient of beta is used to measure stock volatility relative to market. A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. In statistical terms, beta represents the slope of the line through a regression of data points from an individual stock's returns against those of the market.
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