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:

Negatively Correlated

Refers to two variables that move in opposite directions, meaning when one variable increases, the other decreases, and vice versa.

Positively Correlated

A relationship between two variables in which they move in the same direction, meaning as one variable increases, the other also increases.

401k Retirement Accounts

Tax-advantaged retirement savings accounts offered by employers, allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Enron Corp.

An American energy company based in Houston, Texas, that famously collapsed in 2001 due to widespread corporate fraud and corruption.