Which Statement About a Stock's Beta Is Correct

question 142

Multiple Choice

Which statement about a stock's beta is correct?

• A)If a stock has a beta equal to 1.0, its required rate of return will be unaffected by changes in the market risk premium.
• B)A stock with a negative beta must in theory have a negative required rate of return.
• C)If a stock's beta doubles, its required rate of return must also double.
• D)If a stock's returns are negatively correlated with returns on most other stocks, the stock's beta will be negative.

Identify the importance of societal and cultural norms in defining abnormal behavior.

Recognize the importance of addressing suicidal thoughts and behaviors appropriately.

Understand the diagnostic criteria and characteristics of various anxiety disorders.

Recognize the symptoms and triggers of panic attacks and specific phobias.

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Definitions:

Goods X

An unspecified product or commodity that is the subject of economic analysis or transaction.

Goods Y

A reference to a particular class or type of goods, often used in economic models.

Diminishing Marginal Rate

The Decline in the additional output produced when a new unit of input is added, with all other inputs held constant.

Substitution

The economic concept where consumers replace more expensive items with less costly alternatives, or firms replace inputs with more economical options.