Which of the Following Statements Concerning Beta Are Correct

question 79

Multiple Choice

Which of the following statements concerning beta are correct?
I. Stock with high standard deviations of returns will always have high betas.
II. The higher the beta, the higher the expected return.
III. A beta can be positive, negative, or equal to zero.
IV. A beta of 0.35 indicates a lower rate of risk than a beta of 0.50.

• A) II and III only
• B) I and IV only
• C) II, III and IV only
• D) I, II, III and IV

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Definitions:

Organized Labor

Groups of workers, such as unions, who collectively negotiate wages, working conditions, and other employment terms with their employers.

Intrinsic Rewards

The personal satisfaction and fulfillment derived from accomplishing a task or learning new skills, independent of external rewards.

Cash Bonus

A financial reward given to employees or individuals, typically as a lump sum, as a recognition of their contributions or achievements.

Flextime Program

A flexible working hours scheme that allows employees to alter their start and finish times, within certain limits, to suit their personal commitments and needs.