Which of the Following Statements About a Stock's Beta Is

question 85

Multiple Choice

Which of the following statements about a stock's beta is true?

• A) Stocks with betas of less than 2.0 have low price volatility.
• B) High-beta stocks are relatively conservative investments.
• C) The higher the beta, the more confidences that investors are presumed to have in a given security.
• D) Most stock betas are positive.
• E) Stocks with positive betas are considered to be highly volatile.

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Definitions:

Continental Shield

A central region of many continents consisting of relatively old metamorphic and igneous rocks, commonly of Precambrian age.

Sediment-Filled Basin

A low area on the earth's surface where sediments have accumulated over time, often forming layers that can contain valuable geological information.

Regional Effects

Regional effects refer to the impacts or consequences of natural or human activities that are felt over a wide geographic area, often crossing administrative boundaries.

Plate Boundaries

The edges where two tectonic plates meet, characterized by geological activities such as earthquakes and volcanic eruptions.