Which of the following is a good measure of the relationship between an investment's returns and the market's returns?
A) The beta coefficient
B) The standard variation
C) The CPI
D) The S&P 500 Index

Question

Quizplus · Accepted Answer

The beta coefficient is a statistical measure that compares the volatility of returns for a particular investment to the overall market's returns. It measures the investment's sensitivity to market movements, making it a good measure of the relationship between an investment's returns and the market's returns. The other options (standard variation, CPI, S&P 500 Index) do not specifically measure the relationship between an investment's returns and the market's returns.

Which of the Following Is a Good Measure of the Relationship