OKAY Stock Has a Beta of 0

question 92

Multiple Choice

OKAY stock has a beta of 0.8. The market as a whole is expected to decline by 12% thereby causing OKAY stock to

• A) decline by 9.6%.
• B) decline by 12.5%.
• C) increase by 9.6%.
• D) increase by 12%.

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Definitions:

Premium

The amount paid for an insurance policy or the cost above the nominal value of something.

Surety

A person or entity that assumes responsibility for another's performance of an obligation, such as the repayment of a loan or the fulfillment of a contract.

Suretyship Relationship

is a legal arrangement where a surety guarantees the performance of a debtor's obligation to a creditor, assuming liability if the debtor fails to fulfill the contractual obligation.

Principal Debtor

The main individual or entity responsible for repaying a debt or obligation.