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:

Filium Terminale

A fibrous tissue extending from the conus medullaris of the spinal cord to the coccyx, providing longitudinal support to the spinal cord.

Dorsal Root Ganglion

A cluster of sensory neurons located in the dorsal root of a spinal nerve, transmitting sensory information to the spinal cord.

Ventral Root

A bundle of motor neuron fibers emerging from the anterior aspect of the spinal cord and conveying impulses from the central nervous system to the muscles.

Spinal Nerve

One of the 31 pairs of nerves that originate from the spinal cord, providing motor and sensory functions to the body.