A Beta Greater Than 1 Is Indicative of an Above-Average

question 27

True/False

A beta greater than 1 is indicative of an above-average level of diversifiable (unsystematic)risk.

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Definitions:

Isolationism

The desire to avoid foreign entanglements that dominated the U.S. Congress in the 1930s; beginning in 1935, lawmakers passed a series of Neutrality Acts that banned travel on belligerents’ ships and the sale of arms to countries at war.

International Conflicts

Disputes between different countries or nations, which can involve military, economic, or diplomatic disagreements and can escalate to war.

Defense Industries

Industry sectors that produce weapons, military technology, and equipment for the purpose of national defense and security.

Permanent Workers

Employees who are hired on an indefinite basis, often receiving full-time benefits and job security, as opposed to temporary or contract workers.