Which of the Following About Beta Coefficient Is Incorrect

question 14

Multiple Choice

Which of the following about beta coefficient is incorrect?

• A) A stock of beta 1.25 indicates the share price will perform 25% better than the overall market when prices are rising.
• B) A stock of beta 1.25 indicates the share price will perform 25% worse than the overall market when prices are falling.
• C) A stock with a beta of 1.25 will move more than a stock with a beta of 1.25.
• D) A stock with a beta of 0.50 will rise at only half the rate at which the overall market index will rise.

Understand the relationship between marginal revenue product (MRP), wage rate, and hiring decisions.

Understand the impact of product demand elasticity on the demand for labor and how it influences labor's elasticity of demand.

Understand how the price of substitutes and complements affects the demand for a resource.

Comprehend the role of the marginal revenue product curve in determining input demand.

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