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

Evaluate the significance of the signaling effect in dividend announcements and stock repurchase decisions.

Recognize the importance of timing in purchasing stocks to receive dividends.

Understand the role of the IRS in the legitimacy of stock repurchases.

Assess the financial market's reaction to dividend payments and non-payments.