Question: Please explain the following A stock's beta measures the: average return on the stock. sensitivity of the stock's returns to those of the market portfolio.

Please explain the following

A stock's beta measures the:

  • average return on the stock.

  • sensitivity of the stock's returns to those of the market portfolio.

  • difference between the return on the stock and the return on the market portfolio.

  • market risk premium on the stock.

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