Question: What does the beta in the Capital Asset Pricing Model (CAPM) measures? Group of answer choices Beta measures the opposite of alpha. Beta measures how

What does the beta in the Capital Asset Pricing Model (CAPM) measures?

Group of answer choices

Beta measures the opposite of alpha.

Beta measures how much the individual stock's return is related to the return of the market.

Beta measures idiosyncratic risk of the stock.

Beta measures the size of the stock market bubble.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!