What Is the Most Likely Explanation for a +20

question 49

Multiple Choice

What is the most likely explanation for a +20.0% return on a stock with a beta of 1.0 in a month when the market returned +10.0%?

• A) The stock is aggressive.
• B) The market is undervalued.
• C) Favorable firm-specific news was reported.
• D) The beta is really less than 1.0.

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Definitions:

Decision Makers

Individuals or entities that have the authority to make choices or form policies within organizations, significantly impacting its direction and operations.

Days' Sales

A financial metric that estimates the average time it takes for a company to turn its inventory into sales.

Raw Materials Inventory

The total cost of all the materials kept in stock that are intended to be used in the manufacturing process.

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business.