Two Investments, X and Y, Have Beta Values of 0

question 221

Multiple Choice

Two investments, X and Y, have beta values of 0.1 and 3.0 respectively.Based on this, we can claim that, relative to the market portfolio,

• A)both have more nondiversifiable risk than the market portfolio.
• B)both have less nondiversifiable risk than the market portfolio.
• C)X has more nondiversifiable risk and Y has less nondiversifiable risk than the market portfolio.
• D)X has less nondiversifiable risk and Y has more nondiversifiable risk than the market portfolio.

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Definitions:

Extended Care Unit

A facility that provides long-term medical care, rehabilitation, or assistance with activities of daily living for patients recovering from an illness or surgery.

Pelvic Floor Muscles

A layer of muscles that support the pelvic organs and span the bottom of the pelvis, playing a key role in urinary and fecal continence as well as sexual function.

Bedpan

A receptacle for urine and feces used by people confined to bed.

Abdomen Pressure

Refers to the force exerted in the abdominal cavity, which can be affected by conditions such as ascites, pregnancy, or obesity.