Which One of the Following Statements Is Correct

question 415

Multiple Choice

Which one of the following statements is correct?

• A) A beta of 1.2 indicates that a security has less risk than the overall market.
• B) Treasury bills have a beta of zero.
• C) A stock with a beta of 1.4 has less systematic risk than a stock with a beta of .9.
• D) The risk premium associated with a stock will decrease as the beta of the stock increases.
• E) The beta of a diversified portfolio will approach zero as the number of stocks in the portfolio is increased.

---

Definitions:

Self-Actualization Needs

The apex of Maslow's needs pyramid, which encompasses achieving one's ultimate potential, pursuing self-realization, aiming for personal development, and experiencing life's high points.

Social Responsibility

The obligation of an entity, individual or corporate, to act for the benefit of society at large, often incorporating ethical considerations and sustainability practices into business operations.

Behaviour Modification

The application of behavioral change techniques to alter individuals' activities and reactions.

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level and include self-esteem, confidence, respect by others, and respect for others.