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.

---

Definitions:

Historical Perspective

An understanding of historical contexts and developments, and how they influence and shape the present and future.

Clothes

Items worn on the body, typically made of fabric, used for protection, modesty, or social signaling among other purposes.

Status

A recognized social position that an individual can occupy.

Taste

Refers to individuals' personal and cultural preferences for specific flavors, styles, or aesthetics.