Asked by
kenisha hawkes
on Dec 02, 2024Verified
Beta measures:
A) business risk.
B) risk aversion.
C) total risk.
D) market risk.
Market Risk
The potential for investors to experience losses due to factors that affect the overall performance of the financial markets, such as economic downturns or fluctuations in interest rates.
Business Risk
The possibility of loss resulting from the day-to-day operations of a business, which can be influenced by numerous factors including market conditions, production costs, and management decisions.
Risk Aversion
The inclination of investors to avoid risk, preferring safer investments over those with higher potential for gains but also greater risk.
- Understand the concept of beta and its role in measuring market risk.
Verified Answer
DD
Learning Objectives
- Understand the concept of beta and its role in measuring market risk.