In the context of finance, the term “beta” refers to: |ForumIAS

[A] the process of simultaneous buying and selling of an asset from different platforms

[B] an investment strategy of portfolio manager to balance risk versus reward

[C] a type of systemic risk that arises where perfect hedging is not possible

[D] a numeric value that measures the fluctuations of a stock to change in the overall stock market

Answer: D

Notes:

Exp) Option d is the correct answer.

Beta: A stock’s expected movement in relation to overall market movements is measured by a concept called beta. A stock with a beta greater than 1 is considered to be more volatile than the broader market, while the stock with a beta less than 1 is considered to be less volatile.
The Capital Asset Price Model (CAPM), a model that calculates a stock’s return, uses beta as its primary factor. The beta calculation can be used to assess the stock’s volatility and systematic risk associated to it.

Source: https://economictimes.indiatimes.com/definition/beta

Subject) Economy