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In the context of finance, the term ‘beta’ refers to

,

In the context of finance, the term ‘beta’ refers to

(a)

the process of simultaneous buying and selling of an asset from different platforms

(b)

an investment strategy of a portfolio manager to balance risk versus reward

(c)

a type of systemic risk that arises where perfect hedging is not possible

(d)

a numeric value that measures the fluctuations of a stock to changes in the overall stock market

Answer:

(d)

CA

Explanation

The correct answer is (d). Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock market. A beta of 1.0 means that the stock moves in the same direction as the market. A beta of greater than 1.0 means that the stock moves more than the market.