A Stock with a Beta Greater Than 1

question 102

Multiple Choice

A stock with a beta greater than 1.0 has returns that are ________ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are ________ volatile than those of the market portfolio.

• A) more, more
• B) more, less
• C) less, more
• D) less, less

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Definitions:

Relaxation Training

A therapeutic technique involving exercises or activities designed to reduce stress and anxiety, promoting physical and mental calm.

Muscles

Tissues in the body that have the ability to contract, enabling movement of the body and its parts.

Thoughts

Mental processes in which ideas, opinions, or beliefs are formulated.

Cardiovascular System

A complex system consisting of the heart and blood vessels that circulates blood throughout the body to deliver oxygen and nutrients and remove waste products.