Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A) A stock with a beta less than zero has no exposure to systematic risk.
• B) A stock with a beta greater than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.
• C) A stock with a beta less than 1.0 has lower nondiversifiable risk than a stock with a beta of 1.0.
• D) A stock with a beta less than 1.0 has higher nondiversifiable risk than a stock with a beta of 1.0.

---

Definitions:

Supply Determined

A scenario where the quantity of goods available in the market is primarily dictated by the supply side, rather than consumer demand.

Spruce Goose

The nickname for the Hughes H-4 Hercules, famously known as the largest wooden airplane ever constructed and flown only once.

Fixed in Supply

Pertains to goods or resources that have a limited or unchangeable quantity available, regardless of demand.

High-Speed Rail

A type of rail transport that operates significantly faster than traditional rail traffic, using specialized rolling stock and dedicated tracks.