The Average of Beta Values for All Individual Stocks Is

question 111

Multiple Choice

The average of Beta values for all individual stocks is:

• A)greater than 1.0; most stocks are aggressive.
• B)less than 1.0; most stocks are defensive.
• C)unknown; Betas are continually changing.
• D)exactly 1.0; these stocks represent the market.

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Definitions:

Genes

Units of heredity made up of DNA that code for the synthesis of proteins responsible for the organism's characteristics and functions.

Chromosome

A long DNA molecule with part or all of the genetic material of an organism.

Polygenic Inheritance

The inheritance of traits controlled by two or more genes, resulting in a wide range of phenotypes for certain characteristics.

Independent Pairs

A concept in statistics referring to pairs of observations that are not influenced by any of the other pairs in a data set.