Which of the Following Statements Concerning Beta Are Correct

question 42

Multiple Choice

Which of the following statements concerning beta are correct?
I. Adding stocks with high betas to a portfolio increases the portfolio's risk.
II. The higher the beta, the higher the expected return.
III. A beta can be positive, negative, or equal to zero.
IV. A beta of .35 indicates a lower rate of risk than a beta of -0.50.

• A) II and III only
• B) I and IV only
• C) II, III and IV only
• D) I, II, III and IV

---

Definitions:

Diesel Electric Hybrid

A vehicle or machine that uses a combination of a diesel engine and electric motors for propulsion, aiming to increase efficiency and reduce emissions.

Increase Emissions

Refers to a rise in the release of pollutants into the atmosphere from sources such as vehicles, industries, or machines.

ASE Certified

A certification by the National Institute for Automotive Service Excellence indicating a high level of competency in various aspects of automotive repair and service.

ATA Technology

ATA (Advanced Technology Attachment) is a standard disk drive interface that connects storage devices like hard drives to a computer's motherboard.