Which of the Following Is True Concerning Beta

question 95

Multiple Choice

Which of the following is true concerning beta?

• A) The beta assigned to the overall market is zero
• B) A stock with a beta of 1.2 earns a lower risk premium than does the overall market
• C) A stock with a beta of 0.5 has 50% more risk than the overall market
• D) A stock with a beta of 1.1 has a risk premium that is greater than the market risk premium
• E) The higher the beta, the lower the market risk

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Definitions:

Subarachnoid Space

The interval between the arachnoid membrane and the pia mater surrounding the brain and spinal cord, filled with cerebrospinal fluid.

Arachnoid Mater

A delicate membrane, one of the three layers of the meninges that surround the brain and spinal cord.

Obturator Nerve

A nerve in the pelvis that emerges from the lumbar plexus, innervating portions of the lower limbs, particularly muscles in the medial thigh.

Genitofemoral Nerve

A nerve arising from the lumbar plexus, involved in motor and sensory functions of the genital and femoral regions.