Asset 1 Has a Beta of 1

question 64

Multiple Choice

Asset 1 has a beta of 1.2 and Asset 2 has a beta of 0.6.Which of the following statements is correct?

• A) Asset 1 is more volatile than Asset 2.
• B) Asset 1 has a higher expected return than Asset 2.
• C) In a regression with individual asset's return as the dependent variable and the market's return as the independent variable, the R-squared value is higher for Asset 1 than it is for Asset 2.
• D) All of the above statements are correct.

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Definitions:

Career Counseling

A professional service that helps individuals understand their abilities, interests, and challenges to make informed career decisions.

Tenets

Fundamental beliefs or principles that serve as the foundation for a system, theory, or organization.

SCCT

Stands for Social Cognitive Career Theory, which focuses on how individuals develop their career interests, make choices, and achieve career success based on personal goals, background, and contextual influences.

Contextual Influences

Factors or conditions in the surrounding environment that significantly impact the behavior, decisions, or outcomes of individuals or groups.