Beta is the slope of the best fit line for the points with coordinates representing the____________ and the____________ for each one of several years.
A) market rate of return; security's rate of return
B) risk level of a stock; market rate of return
C) rate of return; level of risk for an individual security
D) rate of inflation; rate of return for an individual security

Question

Quizplus · Accepted Answer

Beta measures the relationship between the market rate of return and a security's rate of return, indicating the security's volatility relative to the market.

Beta Is the Slope of the Best Fit Line for the Points