Practice mode Finance

For an individual stock, what is the relevant risk measured by?

Correct answer C. Beta coefficient

Explanation

In a diversified portfolio only market risk matters, so the relevant risk of a single stock is its contribution to market risk, measured by its beta coefficient.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.