Stock A's Beta Is 1

question 139

Multiple Choice

Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true about these securitiesσ (Assume market equilibrium.)

• A) stock b must be a more desirable addition to a portfolio than a.
• B) stock a must be a more desirable addition to a portfolio than b.
• C) the expected return on stock a should be greater than that on b.
• D) the expected return on stock b should be greater than that on a.
• E) when held in isolation, stock a has more risk than stock b.

Understand the concept of privity of contract and its exceptions.

Comprehend the distinction between intended and incidental beneficiaries and their rights.

Recognize the impact of transferring rights or duties on the original parties’ obligations and rights.

Understand the legal requirements and formalities for the valid assignment and delegation of contracts.

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Definitions:

School Engagement

The involvement and emotional commitment of a student to their educational institution and learning process.

Academic Achievement

The extent of knowledge and skill a person has acquired through education and learning.

Stable Over Time

A term describing something that remains consistent and unchanged over a significant period.

Dyscalculia

A specific learning disability that affects a person's ability to understand numbers and learn math facts.