Beta can be defined as the slope of the line that explains the relationship between
A) the return on a security and the return on the market.
B) the risk-free rate of return versus the market rate of return.
C) the returns on a security and various points in time.
D) the return on stocks and the returns on bonds.

Question

Quizplus · Accepted Answer

Beta measures the sensitivity of a security's returns to the returns of the market, indicating how much the security's return is expected to change in response to a change in the market return.

Beta Can Be Defined as the Slope of the Line