Beta is a statistical measure of
A)weighted average performance.
B)total risk.
C)the standard deviation.
D)the relationship between an investment's returns and the market return.

Question

Quizplus · Accepted Answer

Beta measures the relationship between an investment's returns and the market return. It is used to determine an investment's volatility and risk in relation to the overall market. A beta of 1 indicates that the investment's price will move in line with the market, while a beta greater than 1 indicates higher volatility and risk, and a beta less than 1 indicates lower volatility and risk.

Beta Is a Statistical Measure of