(a) the process of simultaneous buying and selling of an asset from different platforms 

(b) an investment strategy of a 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 changes in the overall stock market

Ans: d

Explanation:

Beta is an important statistical metric used to assess the volatility of a specific stock in relation to the overall market, which is typically represented by a market index. In this context, the market itself serves as a benchmark, with a beta value of 1.

A stock with a beta greater than 1 indicates that it is likely to experience greater price changes compared to the market; it is expected to rise more during market upswings and fall more during downturns. On the other hand, stocks with a beta of less than 1 are anticipated to have smaller fluctuations, rising less in a bull market and falling less in a bear market. Interestingly, there are rare instances where a stock may exhibit a negative beta, signifying that it moves in the opposite direction of the market trends.

Hence, option d is correct.

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