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:

Sight Vocabulary

Words that are immediately recognized on the basis of familiarity with their overall shapes, rather than decoded.

Rote Learning

A memorization technique based on repetition, often without an understanding of the reasoning or relationships behind the information.

Decode New Words

The process of interpreting and understanding unfamiliar words by using knowledge of phonics, context clues, and morphemes.

Grammatical Abilities

The capability to use and understand the rules and structures of language to communicate effectively.