Which of the following does NOT describe beta?
A. A measure of the sensitivity of the return on an asset to the return on an index
B. The slope of the best fit line when the return on an asset is regressed against the return on the market
C. The hedge ratio necessary to remove market risk from a portfolio
D. Measures correlation between futures prices and spot prices for a commodity
D
A, B, and C all describe beta but beta has nothing to do with the correlation between futures and spot prices for a commodity
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A) control demand B) advertise enough C) understand international laws D) find outlets E) identify consumer needs
A simplified scoring model addresses all the weakness of a checklist model for project screening
Indicate whether the statement is true or false