If a Stock Has a Beta Greater Than 1

question 41

Multiple Choice

If a stock has a beta greater than 1.0, it means:

• A) the stock's return has greater than average sensitivity to the market return.
• B) the stock would be an attractive holding during a bear market.
• C) an investor will earn a higher return on the stock than the market returns.
• D) the stock is less risky than the market portfolio.

---

Definitions:

Adapters

Individuals or devices that modify or adjust to different situations or environments for the purpose of compatibility or efficiency.

Nonverbal Cues

Communication methods other than spoken or written words, such as gestures, facial expressions, and body language, providing additional context or meaning.

Low-context Cultures

Cultural groups where communication is explicit, messages are direct, and understanding is based more on explicit content rather than context or non-verbal cues.

Nonverbal Signals

Communication methods that do not involve speech, such as gestures, facial expressions, and body language, which convey messages or emotions.