Assume the Beta for the Stock Market in General Is

question 74

Multiple Choice

Assume the beta for the stock market in general is 1.0 and that the beta for World-Wide Television Productions is 2.4.Which of these statements is not true?

• A)The average stock is less risky than World-Wide Television Productions stock.
• B)World-Wide Television Productions stock is more risky than the average stock.
• C)Beta compares the risk of a specific stock issue with the risk of the stock market in general.
• D)Most stocks have betas between 0.5 and 2.
• E)World-Wide Television Productions stock is less risky than the average stock.

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Definitions:

Incongruent

Lacking harmony, consistency, or appropriateness, possibly leading to confusion or conflict.

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Actions or behaviors that are typically associated with experiencing psychosis, including hallucinations, delusions, disordered thinking, and acting in a way that is out of touch with reality.

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A temporary dip in a person’s self-worth or self-respect, often triggered by a specific situation or event.