A Share Has a Beta of 1

question 3

Multiple Choice

A share has a beta of 1.3. The unsystematic risk of this share is ________ the stock market as a whole.

• A)higher than
• B)lower than
• C)equal to
• D)indeterminable compared to

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Definitions:

Foreign Capital

Investment funds originating from outside a country, used to finance domestic business operations and economic development.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible.

Minimal Restrictions

Regulatory or policy conditions that impose the least possible limitations or constraints on actions or operations.

Member Nations

Countries that are part of an international organization or agreement and adhere to its statutes and regulations.