The Stock of Static Corporation Has a Beta of 0

question 24

Multiple Choice

The stock of Static Corporation has a beta of 0.7. If the expected return on the market increases by 6%, the expected return on Static Corporation should increase by

• A)5.3%.
• B)8.6%.
• C)4.2%.
• D)none of the above

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Definitions:

Operant Conditioning

A learning process in which the likelihood of a behavior is modified by the consequences it leads to, such as rewards or punishments.

Positive Outcomes

Favorable or beneficial results or effects of an action or situation.

Infants

Very young children, typically under one year of age, who are in the earliest stages of physical and cognitive development.

Behaviors

Behaviors are the range of actions and mannerisms made by individuals in conjunction with their environment, which includes the other systems or organisms around as well as the physical environment.