Which One of the Following Statements Best Explains the Fact

question 83

Multiple Choice

Which one of the following statements best explains the fact that cyclical firms tend to have high betas?

• A) Their earnings are not stable.
• B) Their stocks are overpriced.
• C) Their earnings are less diversifiable.
• D)Their profit margins are small.

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Definitions:

World Bank

A global financial organization that offers loans and grants to less wealthy nations' governments to support the execution of major capital ventures.

Bilateral Funding

Financial support provided by one country to another, or by a country to an international organization, aimed at supporting economic development or relief efforts.

World Bank

A worldwide economic entity that supplies loans and funding to the administrations of developing countries to facilitate the completion of significant infrastructure projects.

Donor Countries

Nations that provide financial or material aid to other countries for development, relief efforts, or economic assistance.