In the CAPM, If a Stock Has a Beta Coefficient

question 40

Multiple Choice

In the CAPM, if a stock has a beta coefficient near one, 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.

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