You Run a Regression for a Stock's Return on a Market

question 28

Multiple Choice

You run a regression for a stock's return on a market index and find the following Excel output:


This stock has greater systematic risk than a stock with a beta of ________.

• A) .50
• B) 1.5
• C) 2
• D) 3

---

Definitions:

Manifest Consent

Clearly and unmistakably expressed agreement or approval to an action or proposal.

Authorized Act

An action that has been officially approved or sanctioned by the proper authority.

Express Authority

The clear, direct authority granted by a principal to an agent, specifically outlined in their agreement.

Actual Authority

An agent’s ability to affect the principal’s legal relations. Consent must be communicated to the agent.