Question

___________ reflects volatility of return on an investment relative to market swings.

a.

Variance

b.

Alpha

c.

Beta

d.

Standard deviation

Posted under IC 89 Management Accounting

Answer: (c).Beta Explanation:Beta reflects the volatility of return on an investment relative to market swings. A beta greater than 1 indicates higher volatility than the market, while a beta less than 1 suggests lower volatility.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. ___________ reflects volatility of return on an investment relative to market swings.
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following is a financial asset?

View solution

Q. When should the insurer confirm the implementation of Internal/Concurrent Audit observations to the Authority?

View solution

Q. In what manner are shareholders' funds beyond the Solvency Margin treated in terms of investment?

View solution

Q. What is the requirement for reconciliation in the case of ULIP products for life insurers?

View solution

Q. What is the role of the Audit Committee in the internal audit process?

View solution

Q. What is the regulatory requirement for insurers with Asset under Management (AUM) not exceeding Rs. 1000 crores regarding internal audit of investments?

View solution

Q. How often should major expenses like management fees be accrued for computation of NAV?

View solution

Q. What is the significance of maintaining NAV history in the system?

View solution

Q. What is the purpose of the facility to upload transactions like Stock Splits, Dividend Receipts, etc., in the System?

View solution

Q. What role does the System play in compliance with regulatory requirements?

View solution

Q. Why is the periodic credit review necessary for investee companies?

View solution

Q. What is the significance of the System capturing and considering Instrument Ratings?

View solution

Q. What types of risks are associated with investments?

View solution

Q. What is the purpose of the System in monitoring and controlling Inter Fund Transfer transactions?

View solution

Q. What is the role of the Cash Management System (CMS) in managing liquidity risks?

View solution

Q. What is the purpose of the Maker/Checker procedure?

View solution

Q. What is the purpose of the Authority Matrix?

View solution

Q. What role does the Chief Financial Officer (CFO) play in the reporting structure of the investment department?

View solution

Q. What is emphasized regarding the integration of multiple Data-Entry Systems in investment functions?

View solution

Q. How is data transfer between Front Office and Back Office recommended to be carried out?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

Virology

Explore the captivating world of Virology with our specialized category. Dive into...