A Beta Coefficient of +1 Represents an Asset That ________

question 32

Multiple Choice

A beta coefficient of +1 represents an asset that ________.

• A) is more responsive than the market portfolio
• B) has the same response as the market portfolio
• C) is less responsive than the market portfolio
• D) is unaffected by market movement

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Definitions:

Employee Initiative

The ability and willingness of employees to take action and make decisions without explicit instruction or prompting from management.

Flexibility

The quality of being adaptable or variable, capable of changing or being modified according to circumstances.

Unpleasant Event

An occurrence that causes discomfort, distress, or dissatisfaction to an individual.

Desired Employee Behavior

The specific actions or reactions that an organization encourages and rewards in its employees to achieve its objectives.