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.

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Definitions:

Compromise Of 1850

A series of legislative acts passed in the United States aimed at easing political tensions between slave and free states surrounding the issues of slavery and territorial expansion.

Fugitive Slave Act

Laws enacted in the United States in 1793 and 1850 requiring the return of runaway slaves to their owners.

Presidential Election

The process by which the President of the United States is elected, typically through a combination of popular vote and the Electoral College system.

Republicans

A member or supporter of the Republican Party, a major political party in the United States known for its conservative positions on economic and social issues.