If a Stock's Beta Is 0

question 11

Multiple Choice

If a stock's beta is 0.8 during a period when the market portfolio was down by 10%,then,a priori,we could expect this individual stock to:

• A) lose more than 10%.
• B) lose, but less than 10%.
• C) gain more than 10%.
• D) gain, but less than 10%.