The Higher the Beta of a Share The

question 73

Multiple Choice

The higher the beta of a share the:

• A) greater the systematic risk.
• B) lower the systematic risk.
• C) lower the expected return.
• D) less responsive it is to changing share market movements.

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Definitions:

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to determine the distribution's parameter.

Chi-Squared Test Statistic

A value used in chi-squared tests to evaluate how likely observed frequencies of events are to occur under a specific hypothetical distribution.

Expected Value

In probability theory, the sum of all possible outcomes of a particular situation, each multiplied by its likelihood of happening.

Sample Size

Sample size refers to the number of observations or data points collected in a sample from a population for the purpose of statistical analysis.