The Market Rate of Return Increased by 8% While the Rate

question 68

Multiple Choice

The market rate of return increased by 8% while the rate of return on XYZ stock increased by 4%. The beta of XYZ stock is

• A) -2.0.
• B) -0.40.
• C) 0.50.
• D) 2.0.

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Definitions:

Probability

A quantification of an event's chance of happening, displayed as a figure between 0 and 1, where 0 denotes that the event is impossible and 1 denotes absolute certainty of the event occurring.

Occurs

Takes place or happens, often used in the context of events or phenomena that are observed.

Plastic Arrow

A type of arrow made primarily of plastic, typically used for archery training or as a toy.

Probability Assignment

The process of assigning a numerical value between 0 and 1 to the likelihood of an event's occurrence.