Question: A stock's beta measures the: A) average return on the stock. B) volatility of the stock's returns relative to those of the aggregate stock market.

A stock's beta measures the:

A) average return on the stock.

B) volatility of the stock's returns relative to those of the aggregate stock market.

C) sum of the return of the stock and the return of the aggregate stock market.

D) market risk premium on the stock.

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