What Would You Expect to Be Associated with a Company

question 71

Multiple Choice

What would you expect to be associated with a company whose stock has a high beta?

• A)A high potential return
• B)A high dividend yield
• C)A large market capitalization
• D)All of the above are correct.
• E)All but C are correct.

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Definitions:

Continuous Uniform Probability Distribution

A type of probability distribution where all outcomes in a continuous range are equally likely.

Rectangular

Pertaining to a shape or object whose surface has four right angles and the opposite sides are parallel and equal in length.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; quantifies the degree to which values differ from the average value.

Normal Distribution

A bell-shaped curve that represents the distribution of data around a mean, showing that data near the mean are more frequent in occurrence.