In the CAPM, If a Stock Has a Beta Coefficient

question 48

Multiple Choice

In the CAPM, if a stock has a beta coefficient near zero, then

• A)the stock's return is less volatile than the market's average return.
• B)the stock's return is about as volatile as the market's average return.
• C)the stock's return is more volatile than the market's average return.
• D)the stock's risk is greater than its expected return.