Measuring Volatility

Measuring Volatility
 By Finance Ocean

What term refers to the measure of a stock's volatility relative to the rest of the market?

Pick an answer:

1. Beta
2. WACC
3. Liquidity
4. Market Capitalization

Answer: # 1


Explanation: A stock's Beta is a measure of its volatility relative to the market. WACC refers to a company's weighted average cost of capital (the weighted rate of its debt and equity). Liquidity refers to the ability to buy or sell and asset quickly without substantially affecting the price.

Market capitalization is the total number of a company's shares outstanding multiplied by its current stock price.

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