Assume the Beta for the Stock Market in General Is

question 127

Multiple Choice

Assume the beta for the stock market in general is 1.0 and the beta for World-Wide Television Productions is 2.4.If the stock market increases in value by 10 percent,what is the expected increase in value for the World-Wide Productions stock?

• A)12 percent
• B)20 percent
• C)24 percent
• D)48 percent
• E)14 percent

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome following a behavior increases the likelihood of that behavior being repeated in the future.

Social Learning Theory

A theory that suggests people learn from each other through observation, imitation, and modeling.

Omission

The act of leaving out or excluding someone or something, either intentionally or unintentionally.

Contingent

Dependent on certain conditions or circumstances; not absolute but conditional.