Which of the Following Is Correct Regarding a Change in Beta

question 48

Multiple Choice

Which of the following is correct regarding a change in beta and its potential impact on a stock's price?

• A)Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely have an impact on the stock's price.
• B)Any change in beta is not likely to affect the required rate of return on a stock. However, which implies that a change in beta will likely have an impact on the stock's price.
• C)Any change in beta is likely to affect the required rate of return on a stock, which implies that a change in beta will likely not have an impact on the stock's price.
• D)Any change in beta is not likely to affect the required rate of return on a stock, which implies that a change in beta will not likely have an impact on the stock's price.

---

Definitions:

Mortality Salience

The awareness by individuals that their death is inevitable, which can influence behaviors and attitudes.

Sexism-related Words

Language or terms that perpetuate stereotypes or discrimination based on a person's sex or gender.

Computer Task

A specified operation or series of operations performed by a computer, often used in research to assess cognitive or behavioral responses.

Social Dominance Orientation

A personality trait that predicts individuals' preference for hierarchical versus egalitarian social relations.