If the Risk Co-Efficient, Beta, for McDonald's Corporation Is

question 11

Multiple Choice

If the risk co-efficient, beta, for McDonald's Corporation is .9, what can be said about the fluctuation of the company's returns?

• A) They are similar to, but not as volatile, as the returns from the market as a whole.
• B) They are nearly non-existent.
• C) They cannot be calculated without a beta value for the market as a whole.
• D) They are significantly more volatile than the returns from the market a whole.
• E) They are similar to, but more volatile, than the returns from the market as a whole.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded in the market.

Tickets

Documents or electronic codes that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Price

The financial cost of acquiring a good or service.