Stock a Has a Beta = 0

question 18

Multiple Choice

Stock A has a beta = 0.8,while Stock B has a beta = 1.6.Which of the following statements is CORRECT?

• A) Stock B's required return is double that of Stock A's.
• B) If the marginal investor becomes more risk averse,the required return on Stock B will increase by more than the required return on Stock A.
• C) An equally weighted portfolio of Stocks A and B will have a beta lower than 1.2.
• D) If the marginal investor becomes more risk averse,the required return on Stock A will increase by more than the required return on Stock B.
• E) If the risk-free rate increases but the market risk premium remains constant,the required return on Stock A will increase by more than that on Stock B.

Recognize controversial approaches to controlling occupational diseases.

List methods to reduce the incidence of occupational diseases.

Explain the significance of the Occupational Safety and Health Act of 1970.

Understand the functions and roles of the National Labor Relations Board.

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Definitions:

Work Ethic

A set of values based on the principles of diligence and hard work.

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First Impression

The initial perception or judgment formed about something or someone before acquiring additional information.