If an Asset's Beta Is High, Its

question 63

Multiple Choice

If an asset's beta is high, its:

• A) diversifiable risk and expected return are high.
• B) nondiversifiable risk and expected return are high.
• C) diversifiable risk is high; its expected return is low.
• D) nondiversifiable risk is high; its expected return is low.
• E) total risk is high; its return could be any amount.

---

Definitions:

Second-Class Tickets

Tickets offered by transportation services, such as trains or airplanes, that offer a lower level of comfort and amenities compared to first-class at a reduced price.

First-Class Tickets

Tickets that offer premium services and amenities to passengers, typically at a higher price.

Income

Funds that an individual or business receives, usually in exchange for providing a good or service or through investing capital.

Price

The financial commitment expected, necessary, or made as payment for an article.