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:

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Standard Deviation

A measure of the amount of variance or dispersion of a set of values, indicating how much the values in a dataset deviate from the mean.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results.

Sample Mean

The average value of a set of observations derived from a sample.