If a Stock Consistently Goes Down (Up)by 1

question 99

Multiple Choice

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%,then its beta:

• A) equals 1.04.
• B) equals 1.24.
• C) equals 1.33.
• D) equals 1.40.

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Definitions:

Neural Darwinism

Hypothesis that the processes of cell death and synaptic pruning are, like natural selection in species, the outcome of competition among neurons for connections and metabolic resources in a neural environment.

Synaptic Pruning

The process of eliminating weaker synaptic contacts while strengthening others to improve the efficiency of neuronal communication.

Cell Death

The process by which a cell ceases to function and is systematically eliminated, an essential part of an organism's growth and development; it can be programmed (apoptosis) or result from injury (necrosis).

Amygdala

A region of the brain primarily involved in the processing of memory, decision-making, and emotional responses.