A Firm Whose Equity Has a Beta of 1

question 80

Multiple Choice

A firm whose equity has a beta of 1.0:

• A) has greater systematic risk than the market portfolio.
• B) stands little chance of surviving in the international financial market place.
• C) has less systematic risk than the market portfolio.
• D) None of the above is true.

---

Definitions:

Government Bonds

Government Bonds are debt securities issued by a government to finance public expenditure, typically promising to pay periodic interest payments and to return the face value on maturity.

Coin Collection

Coin collection involves the gathering and studying of coins, often focusing on aspects such as design, production era, and historical significance.

Automobile

An automobile is a wheeled motor vehicle used for transportation, mostly designed to run on roads and capable of carrying a small number of people.

Stock Variable

A quantity measured at one specific point in time, representing a snapshot of a quantity.