[amp_mcq option1=”leverage factor” option2=”standard deviation” option3=”beta coefficient” option4=”coefficient of variation” correct=”option3″]<\/p>\n
The correct answer is: C. beta coefficient<\/strong>.<\/p>\n Beta is a measure of a stock’s volatility relative to the market. A stock with a beta of 1 has the same volatility as the market, while a stock with a beta of 2 is twice as volatile as the market. A stock with a beta of 0.5 is half as volatile as the market.<\/p>\n Leverage is a measure of how much debt a company uses to finance its assets. A company with a high leverage ratio is more risky than a company with a low leverage ratio.<\/p>\n Standard deviation is a measure of how spread out a set of data is. A high standard deviation indicates that the data is spread out over a large range, while a low standard deviation indicates that the data is clustered closely together.<\/p>\n Coefficient of variation is a measure of the relative variability of a set of data. It is calculated by dividing the standard deviation by the mean. A high coefficient of variation indicates that the data is very variable, while a low coefficient of variation indicates that the data is very stable.<\/p>\n In conclusion, beta is the best measure of risk for a stock because it takes into account the stock’s volatility relative to the market.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”leverage factor” option2=”standard deviation” option3=”beta coefficient” option4=”coefficient of variation” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-43548","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n