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Beta is: (select the 2 true answers) A: A regression coefficient B: A measure of the...

Beta is: (select the 2 true answers)

A: A regression coefficient
B: A measure of the dispersion of returns around the mean.
C: A measure of the responsiveness of a stock's returns to changes in the returns on a market index.
D: A measure of unsystematic risk
E: A measure of the responsiveness of a stock's returns to changes in the firm's fundamentals
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Answer #1

ANS:

A:   A regression coefficient.

C:   A measure of the responsiveness of a stock's returns to changes in the returns on a market index.

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