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.

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Definitions:

Decreased

A reduction in size, number, value, or extent of something.

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Fatalities that occur as a direct result of cancer or its treatment, encompassing all types of cancer.

Radiation

The emission of energy as electromagnetic waves or as moving subatomic particles, especially high-energy particles that cause ionization.

Nuclear Power Plant

A facility that uses nuclear reactions to generate heat, which is then used to produce electricity.