One Would Expect a Stock with a Beta of 1

question 87

Multiple Choice

One would expect a stock with a beta of 1.25 to increase in returns

• A)25 percent more than the market in up markets.
• B)25 percent more than the market in down markets.
• C)125 percent more than the market in up markets.
• D)125 percent more than the market in down markets.

---

Definitions:

Stockouts

Situations where the demand for a product exceeds the supply available for sale, leading to an inability to fulfill consumer demand.

Virtual Inventory

An inventory management system that uses digital technologies to keep track of stock levels and product information without physical storage.

Contractual Agreement

A legally binding contract or arrangement between two or more parties outlining the terms and conditions of their agreement.

Vendor-Managed Inventory

A business model where the supplier of a product is responsible for maintaining the inventory level for the consumer.