If Last Month a Stock with Beta of 1

question 35

Multiple Choice

If last month a stock with Beta of 1.0 lost two percent while the TSX 300 had a one percent gain, then it appears that:

• A)Beta has been calculated incorrectly
• B)The S&P 500 cannot represent the market
• C)Betas are long-term "best fit" averages, not short-term stock measures
• D)The market index had a good month

---

Definitions:

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, typically applied to income tax to ensure those with higher earnings pay a higher rate of tax relative to their income.

Tax Rates

Percentages at which income, property, and sales are taxed by governments, impacting individuals and businesses.

Income Receivers

Individuals or entities that obtain money or its equivalent for goods provided, services rendered, or through investments.

Transfer Payments

Payments made by the government to individuals or groups without requiring the recipients to provide goods or services in return.