The Average of the Beta Values for All Individual Stocks

question 95

Multiple Choice

The average of the beta values for all individual stocks is:

• A) greater than 1.0; most stocks are aggressive.
• B) less than 1.0; most stocks are defensive.
• C) unknown; betas are continually changing.
• D)exactly 1.0; these stocks represent the market.

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Definitions:

Statement of Cash Flows

A financial statement that details the inflows and outflows of cash within a company during a specific period.

Cash Receipts

The collection of money (cash, checks, electronic transfers) by a business from its customers, either for goods sold or services provided.

Cash Flows

Cash flows refer to the net amount of cash and cash-equivalents being transferred into and out of a business.

Cash Uses

Refers to how cash is spent or utilized by an individual or organization, including operating expenses, investment activities, and financing activities.