Which of the Following Statements Is Correct

question 64

Multiple Choice

Which of the following statements is correct?

• A) If the returns on a stock could vary widely,and its standard deviation is large,then the stock will necessarily have a large beta coefficient.
• B) A stock that is more highly positively correlated with "The Market" than most stocks would not necessarily have a beta coefficient that is greater than 1.0.
• C) A stock's standard deviation of returns is a measure of the stock's "stand-alone" risk,while its coefficient of variation measures its risk if the stock is held in a portfolio.
• D) A portfolio that contained 100 low-beta stocks would be riskier than a portfolio containing 100 high-beta stocks.
• E) Negative betas cannot exist;if you calculate one,you made an error.

---

Definitions:

Observable Culture

The elements of culture such as rituals, symbols, and behaviors that can be seen and experienced in an organization.

Core Values

Fundamental beliefs or principles that guide the behavior and decision-making within an organization.

Pre-Observable Culture

Refers to the underlying beliefs, assumptions, and values that exist within an organization but are not immediately visible or easily detectable.

Workplace Spirituality

A framework within organizations that promotes employees' sense of purpose through work, respects their inner lives, and integrates their core values and beliefs into the workplace.