On average, when the overall market changes by 10%, the stock of Veracity Communications changes 12%. What is Veracity's beta?

Select one:

a. 1.2

b. 12%

c. 8.33%

d. Insufficient information is provided

Beta is a statistical measure of

Select one:

a. the relationship between an investment's returns and the market return.

b. the standard deviation

c. hyperbolic

d. total risk

The capital asset pricing model

Select one:

a. depicts the total risk of a security.

b. measures risk as the correlation coefficient between a security and market rates of return.

c. provides a risk-return trade-off in which risk is measured in terms of the market returns.

d. provides a risk-return trade-off in which risk is measured in terms of beta.