MC $9-9($LO $9\mathrm{.}5)$ What is beta and how is it used in a capital asset pricing model $($CAPM$)?$

What is beta and how is it used in a capital asset pricing model $($CAPM$)?$

Multiple Choice

Measure of the volatility of a security as compared to the stock market index as a whole used in the CAPM model

Measure of the risk associated with the chance of losing your money on the investment

Measure of the volatility of a security as compared to the bond market index

Interest rate used to discount future cash flows