A Stock with a Beta of 1

question 62

True/False

A stock with a beta of 1.3 is less risky than a stock with a beta of 0.42.

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Definitions:

Risk of Loss

Refers to the legal responsibility for the damage or destruction of goods, typically determined by the terms of sale or agreement between parties.

Substitute Goods

Products or services that can replace each other in use, due to their similar characteristics or functionalities.

Good Faith

Acting with honesty, fairness, and sincerity in legal or financial transactions, without intent to deceive or defraud.

Specific Performance

A legal remedy requiring a party to fulfill their contractual obligations, rather than just paying damages.