A Beta of 1

question 35

Multiple Choice

A beta of 1.1 means that for a given 1 percent change in the value of the market, the _______ is expected to change by 1.1 percent in the same direction.

• A)risk-free rate
• B)stock's value
• C)stock's standard deviation
• D)correlation coefficient

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Definitions:

International Transactions

Financial transactions and trade activities that occur between residents of different countries, including exports, imports, and capital flows.

International Monetary Fund

An international organization created for the purpose of promoting global monetary cooperation and financial stability.

Exchange Rates

The price of one currency in terms of another, determining how much of one currency can be exchanged for another.

International Transactions

Financial activities that occur between two or more countries, including trade, investments, and loans.