A Firm Whose Equity Has a Beta of 1

question 80

Multiple Choice

A firm whose equity has a beta of 1.0:

• A) has greater systematic risk than the market portfolio.
• B) stands little chance of surviving in the international financial market place.
• C) has less systematic risk than the market portfolio.
• D) None of the above is true.

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Definitions:

Nucleotide Sequences

The order of nucleotides in a DNA or RNA molecule that determines genetic information.

Double-stranded DNA

The normal form of DNA, consisting of two parallel strands of nucleotides wound around each other in a helix.

RNA Molecule

A nucleic acid present in all living cells. Its principal role is to act as a messenger carrying instructions from DNA for controlling the synthesis of proteins.

Ribosomes

Cellular structures that facilitate the translation of mRNA into proteins by linking amino acids together.