Assume the Beta for the Stock Market in General Is

question 74

Multiple Choice

Assume the beta for the stock market in general is 1.0 and that the beta for World-Wide Television Productions is 2.4.Which of these statements is not true?

• A)The average stock is less risky than World-Wide Television Productions stock.
• B)World-Wide Television Productions stock is more risky than the average stock.
• C)Beta compares the risk of a specific stock issue with the risk of the stock market in general.
• D)Most stocks have betas between 0.5 and 2.
• E)World-Wide Television Productions stock is less risky than the average stock.

---

Definitions:

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.

Formal Treaties

Officially binding agreements between states or nations, governed by international law and formally ratified by the participating entities.

Senate

The upper legislative house in many bicameral parliamentary systems, often tasked with reviewing legislation passed by the lower house.

Delegated Powers

Powers that are explicitly given by the Constitution to the federal government or its branches, allowing it to perform its duties.