If a Stock Has a Beta Greater Than 1

question 13

Multiple Choice

If a stock has a beta greater than 1.0, then its expected return

• A)is greater than the market portfolio.
• B)is less than the market portfolio.
• C)is the same as the market portfolio.
• D)will be 0.

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Definitions:

Conservation

The act of preserving, protecting, or restoring the natural environment and wildlife.

Class Inclusion

Class inclusion is a cognitive ability to understand that a specific item can belong to a broader category as well as to a more specific subcategory at the same time, a concept extensively studied by Jean Piaget.

Decentration

The ability to consider multiple aspects of a situation simultaneously, characteristic of cognitive development in children.

Stimulant

A substance that increases physiological or nervous activity in the body, enhancing alertness, attention, and energy.