Which of the Following Statements Concerning Beta Are Correct

question 42

Multiple Choice

Which of the following statements concerning beta are correct?
I. Adding stocks with high betas to a portfolio increases the portfolio's risk.
II. The higher the beta, the higher the expected return.
III. A beta can be positive, negative, or equal to zero.
IV. A beta of .35 indicates a lower rate of risk than a beta of -0.50.

• A) II and III only
• B) I and IV only
• C) II, III and IV only
• D) I, II, III and IV

Understand the impact of international trade on the demand for skilled versus unskilled labor.

Comprehend the concept of human capital and how it affects earnings.

Articulate the reasons for wage differences among different job types and industries.

Understand the effects of minimum wage laws on employment and labor supply.

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