Assume Last Month a Stock with a Beta of 1

question 89

Multiple Choice

Assume last month a stock with a beta of 1.0 lost 2% while the S&P 500 had a 1% gain. Given this it is most likely that the:

• A) stock's beta has been calculated incorrectly.
• B) S&P 500 cannot represent the overall market.
• C) firm released some negative information about itself.
• D)market index had an exceptionally good month.

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Definitions:

Heart Attack

A medical condition that occurs when blood flow to a part of the heart is blocked for a long time, causing damage to the heart muscle.

Stroke

A loss of brain functions that results from interruption of blood supply to the brain or hemorrhage of blood vessels in the brain and

Targeted Areas

Specific geographic or thematic areas identified for focused intervention or study.