If the Beta of a Specific Share Is 1, What

question 7

Multiple Choice

If the beta of a specific share is 1, what is the likely result of a 2 per cent increase in the market index return?

• A) A 2 per cent increase in the return on the share
• B) A 0.5 per cent decrease in the return on the share
• C) A 2 per cent decrease in the return on the share
• D) A 0.5 per cent increase in the return on the share

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Definitions:

General Principles

Fundamental norms or rules that are widely recognized and upheld in various fields or disciplines.

Culture Shock

Disillusionment and discomfort that occur during the process of adjusting to a new culture.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through study, experience, or teaching.

Host Country

A nation where a corporation operates and maintains business activities outside its headquarters.