A Stock with a Beta Greater Than 1

question 99

Multiple Choice

A stock with a Beta greater than 1.0 would be termed:

• A)an aggressive stock, expected to increase more than the market increases.
• B)a defensive stock, expected to decrease more than the market increases.
• C)an aggressive stock, expected to decrease more than the market increases.
• D)a defensive stock, expected to increase more than the market decreases.

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Definitions:

Total Revenue

The full amount of income generated by the sale of goods or services before any costs are deducted.

Price Per Unit

A measure that indicates the cost of a single unit of a product or service.

Network Effects

The phenomenon whereby a product or service gains additional value as more people use it, enhancing its appeal and utility to new and existing users.

Economies Of Scale

Cost advantages that a business obtains due to expansion, seen in the form of reduced costs per unit as output increases.