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UPSC Prelims 2023 Paper-1 📅 28 May, 2023

In the context of finance, the term 'beta' refers to

A
the process of simultaneous buying and selling of an asset from different platforms
B
an investment strategy of a portfolio manager to balance risk versus reward
C
a type of systemic risk that arises where perfect hedging is not possible
D
a numeric value that measures the fluctuations of a stock to changes in the overall stock market
Result Summary
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APEDIA

UPSC Prelims
2023 • 28 May, 2023 • Paper-1
In the context of finance, the term 'beta' refers to
Correct Answer
a numeric value that measures the fluctuations of a stock to changes in the overall stock market
Subject: Economy.Context: Stock Market Terminologies.Details: In stock market finance, 'Beta' is a statistical measure of a stock's volatility in relation to th......
💡 Analysis & Explanation
Subject
Economy.
Context
Stock Market Terminologies.
Details
In stock market finance, 'Beta' is a statistical measure of a stock's volatility in relation to the overall market. A beta greater than 1.0 indicates that the stock is theoretically more volatile than the market, whereas a beta less than 1.0 means it is less volatile.