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Beta coefficients may be computed for investment companies and used to compute risk-adjusted rates of return. O True O False
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Beta coefficients may be computed for investment companies and used to compute risk-adjusted rates of return.

O True O False

User Crrlos
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7 votes

Answer:

True

Step-by-step explanation:

The basic function of a beta coefficient is to measure the volatility or systematic risk. Firms and organisation analyse the beta coefficient before they invest in any new ventures because it helps to measure the risk-adjusted rate of returns. Beta coefficient measures the systematic risk which is the market risk, unpredictable and impossible to avoid.

User Mike Petrovich
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