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:

Classification

The systematic arrangement into categories or groups based on shared characteristics or criteria.

Burn

A type of injury to the skin or other tissues, often caused by heat, chemicals, electricity, radiation, or friction.

Severe Sunburn

An acute inflammatory skin condition resulting from excessive exposure to ultraviolet radiation, often leading to red, painful, and swollen skin.

Cool Water

Water at a temperature that is cooler than the surroundings, often used for refreshment or to reduce body temperature.