Which of the Following Statements Is NOT True Regarding Beta

question 29

Multiple Choice

Which of the following statements is NOT true regarding beta?

• A) Beta will have a value of less than 1.0 if the firm's returns are less volatile than the market.
• B) Beta will have a value of greater than 1.0 if the firm's returns are more volatile than the market.
• C) Beta will have a value of equal to 1.0 if the firm's returns are of equal volatility to the market.
• D) All of the statements above are true.

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Definitions:

HUD Guidelines

Regulations and standards set by the U.S. Department of Housing and Urban Development to ensure fair housing and urban development practices.

Down Payment

An initial upfront portion of the total amount due, typically associated with the purchase of expensive items like a home.

Freddie Mac

A government-sponsored enterprise (GSE) in the United States that aims to expand the secondary mortgage market by buying mortgage loans and mortgage-related securities.

Fannie Mae

A government-sponsored enterprise (GSE) aimed at expanding the secondary mortgage market by securitizing mortgages.