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.

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Definitions:

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