Studies Show That If a Fund Has a Beta of 1.1

question 40

Multiple Choice

Studies show that if a fund has a beta of 1.1 for year 1, a good forecast for the beta in year 2 is

• A) 1.3.
• B) 1.1.
• C) .9.
• D) 1.0.

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Definitions:

Capitalism

An economic system based on private ownership of the means of production and their operation for profit.

Human Capital Theory

A theory in economics that views individuals' skills and education as a form of capital and suggests that investments in education and training enhance productivity and earnings.

Dual Labor Market Theory

A theory that suggests the economy is divided into two segments: the primary sector with good jobs and high wages, and the secondary sector with poor jobs and low wages.

Gender Gap

The differences in opportunities, status, attitudes, and conditions for men and women in various aspects of society, including employment and education.