Asked by
Julia Battaglia
on Dec 02, 2024
Verified
The beta coefficient of a stock is reflected in the slope of its characteristic line.
Beta Coefficient
An index of a security's fluctuation in value as compared to the broader market, signifying its relative risk versus the average market risk.
Characteristic Line
In finance, a line that describes the relationship between the returns on a stock and the returns on the market, used in the Capital Asset Pricing Model (CAPM).
- Learn about the beta coefficient as a measure of a stock's market risk.
Verified Answer
TG
Learning Objectives
- Learn about the beta coefficient as a measure of a stock's market risk.