A Stock with a Beta Greater Than 1

question 102

Multiple Choice

A stock with a beta greater than 1.0 has returns that are ________ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are ________ volatile than those of the market portfolio.

• A) more, more
• B) more, less
• C) less, more
• D) less, less

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Definitions:

Employee Annual Earnings

The total amount of income an employee earns in one year, including wages, salaries, bonuses, and other compensation.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance; a U.S. payroll tax to fund Social Security and Medicare benefits.

Employee's Portion

The part of payroll taxes and other deductions that employees are responsible for, which is withheld from their wages.

Taxes

Financial charges imposed by a government on individuals, corporations, and transactions to fund public spending and services.