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.

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Definitions:

Experimental Method

A research methodology that involves manipulating one variable to determine if changes in one variable cause changes in another.

Correlational Method

A research strategy that examines the extent to which two variables are naturally related, without manipulating any of the variables.

Psychometric Approach

A method in psychology that involves measuring mental capacities and processes through standardized tests.

Psychometric Method

A methodological approach in psychology that involves the measurement of mental functions, abilities, and processes through standardized tests and questionnaires.