Series XVMediumFundamental Analysis

In equity analysis, beta (β) of a stock measures:

AThe stock's intrinsic value
BThe company's profitability
CThe dividend yield of the stock
DThe sensitivity of the stock's returns to movements in the overall marketcheck_circle

Correct answer

D. The sensitivity of the stock's returns to movements in the overall market

lightbulbDetailed Solution

Beta measures systematic (market) risk — how much a stock's return moves relative to the market. A beta of 1 moves in line with the market; above 1 is more volatile than the market, below 1 is less. It is a key input in the Capital Asset Pricing Model (CAPM).

Reference: NISM Series XV Research Analyst, Chapter 3.

Practice more Series XV questions

Timed mocks and adaptive practice — free.

Start Practising Free

More from Series XV

See all Series XV questionsarrow_forward

Keep going

One answered question is a start. These hubs cover the rest of the syllabus.

timerFree Mock Quizarrow_forwardA timed quiz you can take right now in the browser — no sign-up, instant score.menu_bookStudy Notesarrow_forwardChapter-by-chapter explainers written to be read in five minutes, not five hours.translateFinance Glossaryarrow_forwardEvery SEBI and markets term you'll meet in the syllabus, defined in plain English.routeLearning Pathwaysarrow_forwardGuided routes into real roles — Research Analyst, Mutual Fund Distributor and more.grid_viewAll 26 NISM Seriesarrow_forwardBrowse every certification, its syllabus and who each one is actually for.descriptionThe NISM Guidearrow_forwardRegistration, fees, pass marks and exam-day logistics, start to finish.