Asked by
Shunquala Robinson
on Dec 02, 2024
Verified
A stock's beta coefficient is developed by plotting the historical relationship between the stock's return and the market's return.
Beta Coefficient
A numerical value that measures the volatility of a stock or portfolio in comparison to the overall market.
Historical Relationship
A connection or correlation between variables or events over a period of time, often analyzed to predict future trends.
- Understand the concept of the beta coefficient as an indicator of market risk for stocks.
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MT
Learning Objectives
- Understand the concept of the beta coefficient as an indicator of market risk for stocks.