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The principle measure of non-diversifiable risk included in the CAPM formula is the beta coefficient. The
beta coefficient measures the volatility or risk inherent in an investment by:
A. Computing the ratio of percentage changes in a stock's price to percentage changes in overall market
values during the same period.
B. Computing the ratio of percentage changes in the expected value of alpha equivalents to derivative
fluctuations.
C. Computing the ratio of stock price to earnings per share.
D. Computing the ratio of changes in earnings per share to changes in sales.
Answer: A
Explanation:
Choice "c" is correct. The beta coefficient represents the measure of a particular stock's percentage
change compared to the percentage change in the market over the same perioD. The equation for the
beta coefficient is as follows:
% in Stock Price
% in Market price
Choice "a" is incorrect. The percentage change in earnings per share related to a percentage change in
sales represents the degree of combined leverage.
Choice "b" is incorrect. The ratio of stock price to earnings per share is the price earnings ratio.
Choice "d" is incorrect. Choice "d" represents a word salad distracter of nonsense terms.
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D. Administrator
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NEW QUESTION: 3
For the devices that form RAiD5, the newly added hard disks that support online addition can be directly added to RAID5 to expand the storage capacity.
Do Not
Affect the original video
A. No
B. Yes
Answer: B
NEW QUESTION: 4
You are defining the parameters for product compliance product safety data sheets in Microsoft Dynamics AX 2012.
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A. Display a warning message during purchase order entry if the product safety data sheet is expired.
B. Set up expired product safety data sheets to renew automatically.
C. Update the batch disposition status to Unavailable for items with expired product safety data sheets.
D. Stop sales order invoice posting for items that have expired product safety data sheets.
Answer: A,D
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