If You Were to Compare the Returns of an Individual

question 14

Multiple Choice

If you were to compare the returns of an individual share to a market index, select the answer below that is most true.

• A) The returns of the individual share will show more variability than those of the market index.
• B) The returns of the individual share will show less variability than those of the market index.
• C) The returns of the individual share will show the same level of variability than those of the market index, if they have the same beta.
• D) None of the above.

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Definitions:

Canadian Dollar

The official currency of Canada, represented by CAD or C$, and divided into 100 cents.

Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

US Dollars

The currency issued by the United States, functioning as its primary medium of exchange and a global reserve currency.

Tourism

The activity of traveling to and staying in places outside one's usual environment for leisure, business, or other purposes.