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:

Heart Attack

A medical emergency in which the blood flow to the heart is suddenly blocked, potentially causing damage to the heart muscle.

Hypochondriasis

A psychological disorder characterized by excessive preoccupation with the fear of having a serious illness, despite medical reassurance.

Bodily Sensations

Feelings or perceptions related to the physical condition or state of the body, often linked to the five senses.

Stomach Cancer

A disease characterized by the abnormal growth of cells in the lining of the stomach that can lead to serious health complications.