If a Share Has a Beta of 1

question 59

Multiple Choice

If a share has a beta of 1.27 this means that it:

• A) has a return that is 27% more volatile on average than the market return.
• B) is a bad investment.
• C) yields a return 1.27 times the market average.
• D) all of the above.

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Definitions:

Improbable Dangers

Perceived threats or risks that have a very low likelihood of occurring.

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