The Average of Beta Values for All Individual Stocks Is

question 53

Multiple Choice

The average of beta values for all individual stocks is:

• A) greater than 1.0; most stocks are aggressive.
• B) less than 1.0; most stocks are defensive.
• C) unknown; betas are continually changing.
• D) exactly 1.0; these stocks represent the market.

---

Definitions:

Long-term Memories

Memories that can be retained for long periods, ranging from several minutes to a lifetime, encompassing facts, experiences, and skills.

Retroactive Interference

A memory phenomenon where new information learned interferes with the ability to recall old information.

Encoding Specificity

The principle that the retrieval of information is improved when the context present at encoding and retrieval is the same.

Von Restorff Effect

A psychological principle that items which stand out are more likely to be remembered than other items.