Which of the Following Statements Is NOT True Regarding Beta

question 29

Multiple Choice

Which of the following statements is NOT true regarding beta?

• A) Beta will have a value of less than 1.0 if the firm's returns are less volatile than the market.
• B) Beta will have a value of greater than 1.0 if the firm's returns are more volatile than the market.
• C) Beta will have a value of equal to 1.0 if the firm's returns are of equal volatility to the market.
• D) All of the statements above are true.

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Definitions:

Divisional Structure

An organizational framework where operations are grouped based on distinct products, services, markets, or geographic locations.

Matrix Structure

An organizational structure that combines two or more types of structures, typically project-based and functional, to leverage the advantages of both.

Functional Structure

An organizational design that groups employees based on their job functions, leading to departments like marketing, finance, and operations.

Organising Function

A management activity that involves arranging resources and tasks to achieve objectives efficiently and effectively.