If a Stock's Returns Are Positively Correlated with the Returns

question 11

Multiple Choice

If a stock's returns are positively correlated with the returns on the general stock market, then

• A)its market-beta must be exactly equal to 1.0.
• B)its returns will increase or decrease by the same percentage as the percentage increase or decrease in the general stock market.
• C)its market-beta must be greater than 1.0.
• D)None of the above is a true statement.

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Definitions:

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, that are present in a cell after DNA replication.

Anaphase II

A stage of meiosis II where sister chromatids are pulled apart by the spindle fibers and move toward opposite poles of the cell.

Synapsis

The pairing of two homologous chromosomes that occurs during meiosis, allowing for the exchange of genetic material between them.

Prophase I

The first stage of meiosis I where chromosomes condense, homologous chromosomes pair, and crossing-over can occur, enhancing genetic diversity.