If the Beta of the Market Index Is 1

question 62

Multiple Choice

If the beta of the market index is 1.0 and the standard deviation of the market index increases from 12% to 18%,what is the new beta of the market index?

• A) 0.8
• B) 1.0
• C) 1.2
• D) 1.5

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Definitions:

Managing Conflict

The process of identifying and addressing differences that have the potential to disrupt harmony and productivity in an organization or relationship.

Assertiveness

The quality of being self-assured and confident without being aggressive, allowing for clear and direct communication.

Cooperativeness

The willingness of an individual to work together with others towards a common goal or interest.

Compromise

A negotiation strategy or solution where parties find a mutually acceptable agreement that partially satisfies both.