A Share with a Beta Greater Than 1

question 29

Multiple Choice

A share with a beta greater than 1.0 has returns that are ________ volatile than the market,and a share 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:

Population Means

The average of a set of characteristics or measurements for an entire population.

Alternative Hypothesis

A hypothesis that is adopted when there is sufficient evidence to reject the null hypothesis, often denoted H1.

Population Proportion

The ratio or fraction of members in a population that have a particular characteristic, often denoted by P.

Sample Proportion

The fraction of the sample that displays a certain property or characteristic.