Based on the Following Information,make an Estimate of the Stock's

question 36

Multiple Choice

Based on the following information,make an estimate of the stock's beta: Month 1 = Stock +1.5%,Market +1.1%; Month 2 = Stock +2.0%,Market +1.4%; Month 3 = Stock -2.5%,Market -2.0%.

• A) Beta is greater than 1.0.
• B) Beta is less than 1.0.
• C) Beta equals 1.0.
• D) There is no consistent pattern of returns.

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Definitions:

Dominant

Exerting influence or control over others, often used to describe the primary or most influential member of a group or the gene that determines the phenotype in a heterozygote.

Submissive

A behavioral trait characterized by a tendency to yield to the authority or will of others.

Groupthink

The tendency for members of a tightly knit group to be more concerned with preserving group solidarity and uniformity than with objectively evaluating all alternatives in decision making.

Social Psychology

Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.