The Higher an Asset's Beta

question 94

Multiple Choice

The higher an asset's beta,

• A) the lower the expected return will be in an up market.
• B) the more responsive it is to changing market returns.
• C) the less responsive it is to changing market returns.
• D) the higher the expected return will be in a down market.

---

Definitions:

Security Needs

A level in Maslow's hierarchy of needs, focusing on the desire for safety, stability, and protection from physical and emotional harm.

Affiliation Needs

The human desire to form and maintain interpersonal relationships, connections, and a sense of belonging.

Safety Needs

Basic human needs for security and protection from harm, as identified in Maslow's hierarchy of needs, following physiological needs.

Recognition Needs

Human needs pertaining to the desire for appreciation, acknowledgement, and validation of one’s skills, accomplishments, and contributions.