The Best Stock to Own When the Stock Market Is

question 109

Multiple Choice

The best stock to own when the stock market is at a peak and is expected to decline in value is one with a beta of

• A) +1.5.
• B) +1.0.
• C) -1.0.
• D) -0.5.

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Definitions:

Book Income

The income calculated for accounting purposes, rather than for tax purposes, often used to measure a company's financial performance.

Taxable Income

The amount of income used to determine how much tax an individual or a corporation owes to the government.

Federal Income Tax

A charge imposed by the IRS on the yearly income of individuals, corporations, trusts, and various legal bodies.

Book Depreciation

The method of allocating the cost of a physical or tangible asset over its useful life for accounting and tax purposes.