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:

Sex Chromosome

A chromosome in the shape of a Y (male) or an X (female) that determines the sex of the child.

Klinefelter Syndrome

A chromosomal disorder found among males that is caused by an extra X sex chromosome and is characterized by infertility and mild intellectual disability.

Phenotype

The actual form, or constitution, of a person as determined by heredity and environmental factors.

Heredity

The passing of traits from parents to offspring through genes.