A Firm Whose Equity Has a Beta of 1

question 80

Multiple Choice

A firm whose equity has a beta of 1.0:

• A) has greater systematic risk than the market portfolio.
• B) stands little chance of surviving in the international financial market place.
• C) has less systematic risk than the market portfolio.
• D) None of the above is true.

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Definitions:

Square

A four-sided polygon with all sides of equal length and angles that are right angles, also represents equality in various contexts.

Sufficient Condition

A condition or set of conditions that, if met, ensures the occurrence or truth of another condition.

Equal Length

Describes two or more objects or segments having the same measurement from end to end or boundary to boundary.

Necessary Condition

A prerequisite necessity for the truth or occurrence of an event or statement.