If a Certain Stock Has a Beta Greater Than 1

question 52

Multiple Choice

If a certain stock has a beta greater than 1.0,it means:

• A)the stock's return has greater than average sensitivity to the market return.
• B)the stock would be an attractive holding during a bear market.
• C)an investor will earn a higher return on the stock than the market returns.
• D)the stock is less risky than the market portfolio.

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Definitions:

Consensus Crime

A type of crime that is universally agreed upon by society as being wrongful and deserving of punishment.

Consensus Crimes

Offenses that are universally considered to be socially harmful and morally unacceptable, leading to general agreement on their criminalization.

Political Pressure

Actions taken by individuals or groups to influence or persuade government officials and policymakers to enact or change legislation.

Legal Changes

Modifications or amendments to existing laws and legal systems, often prompted by societal shifts or the need to address new issues.