In the context of finance, the term ‘beta’ refers to
[amp_mcq option1=”the process of simultaneous buying and selling of an asset from different platforms” option2=”an investment strategy of a portfolio manager to balance risk versus reward” option3=”a type of systemic risk that arises where perfect hedging is not possible” option4=”a numeric value that measures the fluctuations of a stock to changes in the overall stock market.” correct=”option4″]
This question was previously asked in
UPSC IAS – 2023
– A beta of 1 implies the stock’s price moves in line with the market.
– A beta greater than 1 suggests the stock is more volatile than the market.
– A beta less than 1 suggests the stock is less volatile than the market.
– A beta of 0 implies no correlation with the market.