Which of the following measures the average relationship between a stock's returns and the market's returns?
A) coefficient of validation
B) standard deviation
C) geometric regression
D) beta coefficient

Question

Quizplus · Accepted Answer

The beta coefficient measures the average relationship between a stock's returns and the market's returns. It is a measure of the stock's volatility in relation to the market as a whole, and is commonly used in the Capital Asset Pricing Model (CAPM) to calculate the expected return of a stock. Options A, B, and C are not relevant to measuring the relationship between a stock's returns and the market's returns.

Which of the Following Measures the Average Relationship Between a Stock's