Use the Information for the Question(s)below

question 20

Multiple Choice

Use the information for the question(s) below.
Suppose the market portfolio's excess return tends to increase by 30% when the economy is strong and decline by 20% when the economy is weak.A type S firm has excess returns that increase by 45% when the economy is strong and decrease by 30% when the economy is weak.A type I firm will also have excess returns of either 45% or -30%,but the type I firm's excess returns will depend only upon firm-specific events and will be completely independent of the state of the economy.
-What is the Beta for a type I firm?

• A)1.0
• B)0.75
• C)0.0
• D)1.5

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Definitions:

Brain Circuits

Networks of interconnected neurons that process specific types of information or perform specific functions within the brain.

Recovery of Function

Recovery of function refers to the process by which functions or abilities that were impaired or lost due to injury or disease are restored or compensated for through rehabilitation or other means.

Brain Damage

Injury to the brain that impairs its functions, which can result from trauma, stroke, or other health conditions.

Emotional Memories

Emotional memories refer to the recollection of past events that are associated with specific emotions, which are stored and processed in various brain regions including the amygdala and hippocampus.