Which of the following is NOT a definition of beta?
A) A measure of systematic risk
B) A measure of risk that can be avoided
C) A statistical measure of an individual asset's or portfolio's co-movement with the returns of the market
D) A measure of nondiversifiable risk
Answer: B
Explanation: B) Beta is a measurement of systematic risk, which cannot be avoided.
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The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor $720,000 Machine supplies 180,000 Indirect materials 210,000 Depreciation on factory building 150,000 Total manufacturing overhead $1,260,000 A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of a) $1,512,000. b) $1,260,000. c) $1,482,000. d) $1,362,000.
A holder in due course takes an instrument free from personal defenses but not universal defenses
Indicate whether the statement is true or false