What Is the Most Logical Explanation for a +2

question 123

Multiple Choice

What is the most logical explanation for a +2.0% return on a stock with a Beta of 1.0 in a month where the market returned +1.0%?

• A)The stock is aggressive
• B)The market is undervalued
• C)Favourable firm-specific news was reported
• D)The Beta is incorrect

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Definitions:

Beck's Theory

A cognitive theory of depression that suggests that negative thinking patterns and beliefs cause and maintain depression.

Negative Automatic Thoughts

Repetitive, brief, spontaneous thoughts often associated with changes in mood and behavior, usually negative and pessimistic in nature.

Personal Loss

An experience characterized by the absence or removal of something valuable in one's life, such as a loved one, job, or possession.

Existential Approach

A psychological perspective emphasizing individual existence, freedom, choice, and meaning.