Options
- A
Liquidity risk
-
Sensitivity of stock returns to market returns
Correct answer
- C
Profitability of a company
- D
Creditworthiness
Why this is the answer
Beta quantifies how a stock’s price moves relative to the overall market. Beta > 1 indicates higher volatility than the market, while Beta < 1 indicates lower volatility. It does not measure liquidity, profitability, or creditworthiness.
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