A Beta Value of 0

question 104

Multiple Choice

A beta value of 0.5 for a security indicates

• A)the security has average systematic risk
• B)the security has above-average systematic risk
• C)the security has no unsystematic risk
• D)the security has below-average systematic risk

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Definitions:

Opportunity Cost

Surrendering the chance for gains from other choices by opting for one path.

Machinery

Equipment, especially of a mechanical nature, used in the production process of goods.

Petroleum

A liquid that occurs naturally under the surface of the Earth, which can be processed into fuel and a range of chemical products.

Labor Productivity

A measure of economic performance calculated by dividing total output by the total number of hours worked.