A Stock with a Beta of 2

question 49

True/False

A stock with a beta of 2.3 means that for every 1 percent change in the market overall, the stock tends to change by 2.3 percent in the same direction.

---

Definitions:

Express Warranties

Explicit promises made by a seller to a buyer regarding the quality or nature of a product.

Disclaimed

A statement that denies responsibility, affiliation, or connection to something.

Impossibility of Performance

A legal doctrine where a party may be released from a contract due to unforeseen events making fulfillment unfeasible.

Subject Matter Destroyed

A situation where the physical or substantive basis of a case or matter has been eliminated or rendered irrecoverable.