Securities with Betas Greater Than L Should Have

question 75

Multiple Choice

Securities with betas greater than l should have:

• A) greater than average diversifiable risk.:::::
• B) lower than average diversifiable risk.
• C) required returns higher than the market return.
• D) no systematic risk.

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Definitions:

Stock Prices

The current price at which a share of a company is traded on the stock market, influenced by various factors including company performance, market conditions, and investor sentiment.

Inventory Investment

Changes in the stocks of finished goods and raw materials that firms keep in reserve to meet orders.

Positive

In economics and finance, "positive" often refers to positive movements in markets or indicators, or affirmations of beneficial aspects of economic policies or conditions.

Negative

Refers to a condition or quantity less than zero, often indicating a deficit or loss in financial contexts.