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CSI Canadian Securities Course IFC Question # 17 Topic 2 Discussion

IFC Exam Topic 2 Question 17 Discussion:
Question #: 17
Topic #: 2

As a measurement of risk, which of the following statements about beta is TRUE?


A.

A larger beta for a stock means it will outperform the market at any point in the business cycle.


B.

It is a relative measure that compares how an investment reacts to movements in a specific index.


C.

It is a ratio that compares a company's current rate of return to its average rate of return overtime.


D.

It corresponds to a stock's riskiness in relation to the frequency of dividend payments over a certain period of time.


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