If a Stock Consistently Goes Down (Up)by 1

question 27

Multiple Choice

If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2%,then its beta equals:

• A) 1.04.
• B) 1.24.
• C) 1.33.
• D) 1.40.

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Definitions:

Genetic Polymorphism

The existence of two or more distinct alleles at a given locus in a population’s genome.

Spans of Control

The number of subordinates or tasks that one manager or leader can effectively oversee or manage.

Middle Managers

Organizational employees who oversee the work of junior staff while reporting to higher management, acting as a linkage within the management hierarchy.