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:

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