Use the Following Three Statements to Answer This Question

question 113

Multiple Choice

Use the following three statements to answer this question:

• A) I, II and III are correct.
• B) I, II and III are incorrect.
• C) I is correct, II and III are incorrect.
• D) I, II are incorrect, III is correct.
• I.A security with a beta of zero implies that all of the variability in this security's return is diversifiable by any investor holding a well-diversified portfolio.
• II.A security with a beta of 1 implies that if the market increased (or decreased)by 1 percent,the return on the security would increase (decrease)by more than 1 percent on average.
• III.A security that has a beta cannot be priced.

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by delusions, hallucinations, and disordered thinking.

Bipolar Disorder

A mental disorder characterized by periods of depression and periods of elevated mood or mania.

Autism

A developmental disorder characterized by difficulties in social interaction, communication, and by restricted or repetitive patterns of thought and behavior.

Genetically Influenced

Traits or conditions that are affected by one's genetic makeup or heredity.