Use the Information for the Question(s)below

question 92

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

---

Definitions:

Management Functions

The core tasks performed by managers to achieve organizational objectives, typically categorized into planning, organizing, leading, and controlling.

Periodic Meetings

Regularly scheduled gatherings designed to discuss ongoing projects, updates, or issues within an organization.

Progress Review

An assessment process used to evaluate and discuss an individual's, team's, or organization's progress and performance against specified goals or standards.

Spokesperson

An individual appointed to speak on behalf of an organization or group, often to convey its stance or to disseminate information.