A measure that describes the risk of an investment project relative to other investments in general is
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Question:
A measure that describes the risk of an investment project relative to other investments in general is known as the "beta." Beta is a key financial metric used in investment analysis, particularly in the context of the Capital Asset Pricing Model (CAPM). It quantifies the systematic risk or volatility of an investment compared to the overall market.
Question: What does beta measure in the context of investment analysis?
A. Specific risk of an investment
B. Volatility of an investment relative to the overall market
C. Total risk associated with an investment
D. Liquidity of an investment
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780321890269
2nd Edition
Authors: Robert Stine, Dean Foster
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