What Is the Most Logical Explanation for a + 2

question 42

Multiple Choice

What is the most logical explanation for a + 2.0% return on a stock with a Beta of 1.0 in a month where the market returned + 1.0%?

• A)the stock is aggressive.
• B)the market is undervalued.
• C)favourable firm-specific news was reported.
• D)the Beta is incorrect.

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Definitions:

Human Consciousness

Refers to the awareness or perception of oneself and the environment, including thoughts, feelings, and sensations.

Unconscious Forces

Psychological factors that influence behavior and decision-making without an individual's conscious awareness, as theorized in psychoanalytic psychology.

Psychosocial Development

Psychosocial development refers to the theory originated by Erik Erikson that describes how individuals develop social and emotional skills across eight stages from infancy to adulthood.

Erikson

Erik Erikson was a developmental psychologist and psychoanalyst known for his theory on the psychological development of human beings, which includes eight stages from infancy to adulthood.