Which of the Following Statements Is NOT True Regarding Beta

question 29

Multiple Choice

Which of the following statements is NOT true regarding beta?

• A) Beta will have a value of less than 1.0 if the firm's returns are less volatile than the market.
• B) Beta will have a value of greater than 1.0 if the firm's returns are more volatile than the market.
• C) Beta will have a value of equal to 1.0 if the firm's returns are of equal volatility to the market.
• D) All of the statements above are true.

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Definitions:

Formula

A mathematical expression that defines a relationship among variables.

Cramér's V

An indicator of the relationship strength between two categorical variables, ranging from 0 to 1.

Cramér's V

A measure of association between two nominal variables, giving a value between 0 and 1, where 0 means no association and 1 indicates perfect association.

Expected Frequency

The theoretical frequency of an event occurring in a set of trials, calculated based on probability theory.