Stock a Has a Beta of 1

question 63

Multiple Choice

Stock A has a beta of 1.2, and stock B has a beta of 1. The returns of stock A are ________ sensitive to changes in the market than are the returns of stock B.

• A) 20% more
• B) slightly more
• C) 20% less
• D) slightly less

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Definitions:

Nonconforming Behaviors

Actions or practices that do not align with the generally accepted rules or standards of a group or society.

Group Sanctions

Collective measures taken by a group to enforce rules or norms, which can include rewards for conformity or penalties for non-compliance.

User Forum

An online discussion site where people can hold conversations in the form of posted messages on various topics.

Meet Online

The act of interacting or connecting with others through internet platforms or services, for personal, social, or professional purposes.