Share a Has a Beta of 1

question 42

Multiple Choice

Share A has a beta of 1.2 and Share B has a beta of 1. The returns of Share A are ________ sensitive to changes in the market as the returns of Share B.

• A)20% more
• B)slightly more
• C)20% less
• D)slightly less

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Definitions:

Critical Thinking

An intensive look into and decision-making on an issue aiming to derive a consensus.

Holistic Critical Thinking

A comprehensive approach to analyzing and evaluating information to come to a well-reasoned conclusion.

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A set of criteria and standards linked to learning objectives used to assess a student's performance on assignments and tests.