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In the context of finance, the term "beta" refers to:

UPSC · 2023 · Economy
Question:
In the context of finance, the term "beta" refers to:

Options

Simultaneous buying and selling of an asset from different platforms
An investment strategy to balance risk versus reward
A type of systemic risk that arises where perfect hedging is not possible
A numeric value that measures the fluctuations of a stock to changes in the overall stock market
Answer: A numeric value that measures the fluctuations of a stock to changes in the overall stock market

Explanation:
Beta measures a stock’s volatility compared to the broader market, representing systematic risk.

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