Which One of the Following Stocks Would NOT Likely Have

question 45

Multiple Choice

Which one of the following stocks would NOT likely have a beta close to 1?

• A)A stock that is part of the most dominant industry.
• B)A stock that has a very high capitalization.
• C)A newly listed stock.
• D)The stock of a well-established firm.

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Definitions:

Services

Economic activities that typically produce an intangible product (such as education, entertainment, lodging, government, financial, and health services).

Decision Trees

A graphical representation used for making decisions, showing various outcomes based on different sequences of decision paths.

Expected Value

The projected value of a variable, computed as the average of all possible outcomes weighted by their probabilities.

Dollar Contribution

The amount of money that sales contribute to the firm's profit before fixed costs are subtracted.