If You Were to Compare the Returns of an Individual

question 53

Multiple Choice

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

• A) The returns of the individual stock will show more variability than those of the market index.
• B) The returns of the individual stock will show less variability than those of the market index.
• C) The returns of the individual stock 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:

Self-Monitoring

The practice of observing and regulating one's own behavior in social settings to adapt to the situation or fulfill social expectations.

CD Recording

The process of capturing sound on a compact disc as a form of audio storage or distribution.

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Methodologies or sets of rules used to encode or classify information for purposes such as data processing or communication.

Trust

Confidence or reliance in the integrity, strength, ability, or character of a person or concept.