Which of the Following Statements About Beta Is Correct

question 42

Multiple Choice

Which of the following statements about beta is correct?

• A)If the returns on a stock vary widely, then its standard deviation is large, and as a result, the stock will also have a high beta coefficient.
• B)A stock's standard deviation of returns is a measure of the stock's stand-alone risk, while its beta measures its unsystematic risk.
• C)A portfolio that contains 100 high-beta stocks will not be riskier than a portfolio containing 100 low-beta stocks.
• D)A stock that is perfectly positively correlated with the market cannot have a beta coefficient equal to 1.0.
• E)A stock with a negative beta has very high firm-specific risk.

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Definitions:

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The action of deleting a specific field or column from a database, spreadsheet, or form, often to simplify data or adjust structure.

Column Heading

A title or label at the top of a column in a table or spreadsheet, indicating the content of the column.

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A database specifically organized as a list, where data is stored and accessed sequentially or by some criteria.

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In programming, a collection refers to a group or structure used to store multiple values or objects, allowing for data management and manipulation.