A Beta Coefficient for a Stock of 0

question 28

Multiple Choice

A beta coefficient for a stock of 0.8 implies​

• A) ​an 8% return on the market will cause the return on this stock to be 10%
• B) an 8% decrease in the market will cause the return on this stock to be 8%​
• C) ​a return of 10% on the market will cause the return on this stock to be 8%
• D) a return of 10% on the market will cause the return on this stock to be ‑8%​

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Definitions:

Days' Sales

A financial metric estimating the number of days required to convert a company's inventory into sales, also known as inventory turnover period.

Cost Of Goods Sold

The expenses directly associated with manufacturing products that a company sells.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Current Position

Refers to the financial status and condition of an entity at a specific point in time, indicating its ability to meet short-term obligations.