One Asset Has a Beta of 1

question 21

Multiple Choice

One asset has a beta of 1.5 and another asset has a beta of 0.75. The difference in beta mean that the asset with a beta of 0.75 has:

• A) 75 percent less nondiversifiable risk than the asset with a beta of 1.5
• B) 75 percent more nondiversifiable risk than the asset with a beta of 1.5
• C) Twice as much nondiversifiable risk as the asset with a beta of 1.5
• D) One-half of the nondiversifiable risk of the asset with a beta of 1.5

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Definitions:

Vision

The ability to think about or plan the future with imagination or wisdom.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Authentic Leader

Authentic Leader describes a leadership style characterized by genuine, transparent, and ethical guidance, emphasizing the leader's true self.

Balanced Processing

A leadership quality where individuals objectively analyze relevant data before making decisions, ensuring diverse viewpoints are considered.