Security a Has a Beta of

question 52

Multiple Choice

Security A has a beta of .99, security B has a beta of 1.2, and security C has a beta of -1.0. This information indicates that

• A) security A has the highest degree of market risk.
• B) security B has 20% more systematic risk than the market.
• C) security C has the highest degree of market risk.
• D) security C would be the best investment if a strong bull market is expected.

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Definitions:

Incongruent Responses

Responses or reactions that do not match the situation or the emotional state expected, often indicating underlying issues.

Exploring Topical

Investigating or discussing subjects that are currently relevant or of interest in a specific field or general discourse.

Elicit Limited Information

The process of obtaining specific, brief pieces of data or insight, often used in investigative or therapeutic contexts.

Math Exam

A formal test that measures an individual's proficiency or knowledge in mathematics.