The Greater the Degree of Systematic Risk,the

question 56

Multiple Choice

The greater the degree of systematic risk,the:

• A) higher the expected share price.
• B) higher the expected rate of return.
• C) lower the expected return on a share.
• D) closer a share's beta will be to 1.

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Definitions:

Unlimited Life

A financial concept usually related to corporations, indicating that they can continue operating indefinitely unless dissolved by their owners or the law.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, making them part owners of the company.

Transfer

The act of moving assets, funds, or ownership rights from one entity to another.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.