Which of the following is a measure of the extent to which the returns on a given stock move with the stock market?
A)Beta coefficient
B)Standard deviation
C)Coefficient of variation
D)Correlation coefficient
E)Probability distribution of expected returns

Question

Quizplus · Accepted Answer

Beta coefficient measures the sensitivity of a stock's returns compared to the returns of the overall market. It indicates the degree of systematic risk involved in the stock. Higher beta suggests higher risk and volatility in the stock's returns, while lower beta indicates lower risk and volatility. Therefore, choice A is the best measure to assess the extent to which the returns on a given stock move with the stock market.

Which of the Following Is a Measure of the Extent