If the Beta of the Market Index Is 1 and the Standard

question 42

Multiple Choice

If the beta of the market index is 1 and the standard deviation of the market index increases from 12% to 18%, what is the new beta of the market index?

• A) .8
• B) 1
• C) 1.2
• D) 1.5

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Definitions:

Right to Free Speech

The freedom to express opinions without censorship or restraint.

Central Hudson Test

A four-part test used by courts to determine whether government regulation of commercial speech violates the First Amendment.

Commercial Speech

Speech made by businesses about commercial matters, such as the sale of goods and services. It is protected by the First Amendment.

Strict-scrutiny Standard

A form of judicial review that courts use to determine the constitutionality of certain laws by ensuring they serve a compelling governmental interest and are narrowly tailored to achieve their goal.