Beta reflects stock risk for investors which is usually_________?
Correct answer: A. Individual
- A. Individual
- B. Collective
- C. Weighted
- D. Linear
Explanation
Beta measures the systematic risk of an individual stock relative to movements in the overall market. It does not measure the stock's total or purely diversifiable risk.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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