Suppose Stock X Has a Beta of 2

question 87

Multiple Choice

Suppose stock X has a beta of 2.5 and stock Y has a beta of 0.5. From this we can conclude that X has

• A) 5 times the nondiversifiable risk of the market portfolio.
• B) 5 times the nondiversifiable risk of Y.
• C) 2.5 times the nondiversifiable risk of Y.
• D) 2.5 times the diversifiable risk of the market portfolio.

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Definitions:

Present Moment

The current point in time, focused on the here and now, without concern for past or future events.

Sufism

A mystical Islamic belief system that seeks to find divine love and knowledge through direct personal experience of God.

Zen Meditation

Zen Meditation is a form of Buddhist practice that focuses on sitting meditation and the cultivation of awareness and insight into the nature of existence.

TM

Transcendental Meditation, a form of silent mantra meditation developed by Maharishi Mahesh Yogi, aimed at promoting relaxation and reducing stress.