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All main topics / Finance & Investment / Derivatives / Derivatives
Which of the following does NOT describe beta?
A.A measure of the sensitivity of the return on an asset to the return on an index
B.The slope of the best fit line when the return on an asset is regressed against the return on the market
C.The hedge ratio necessary to remove market risk from a portfolio
D.Measures correlation between futures prices and spot prices for a commodity
Answer: D

A, B, and C all describe beta but beta has nothing to do with the correlation between futures and spot prices for a commodity

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Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




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