If Last Month a Stock with Beta of 1

question 20

Multiple Choice

If last month a stock with Beta of 1.0 lost two percent while the TSX 300 had a one percent gain, then it appears that:

• A)beta has been calculated incorrectly.
• B)the S&P 500 cannot represent the market.
• C)betas are long-term "best fit" averages, not short-term stock measures.
• D)the market index had a good month.

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Definitions:

Economic Integration

The process by which different countries reduce or eliminate barriers to trade and movement of resources among them to create a more unified and efficient market.

Quota

A restriction placed on the amount of a product allowed to enter or leave a country.

Amount of Product

The quantity of goods or services available for sale or consumption, often measured in physical units or financial terms.

Leave a Country

Refers to the act of exiting a nation's borders, often in the context of individuals or businesses relocating for social, economic, or political reasons.