If a Stock's Returns Tend to Move in the Opposite

question 49

Multiple Choice

If a stock's returns tend to move in the opposite direction of the general stock market, its market-beta will be

• A)equal to 0.0.
• B)a negative number.
• C)greater than 1.0.
• D)a nonsensical number.

Understand how to formulate alternative hypotheses in hypothesis testing situations.

Apply the one-sample t-test methodology.

Determine statistical significance using confidence intervals.

Understand the basics of the sign test for matched pairs.

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Definitions:

Accord And Satisfaction

A negotiated agreement and payment between parties in a dispute, where payment is accepted as full resolution.

Forfeiting Right

The act of giving up or losing a right as a consequence of failing to comply with specific conditions or regulations.

Consideration

In contract law, it refers to something of value promised, given, or received that induces a party to enter into a contract.

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise if the other party has relied on that promise to their detriment.