Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

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

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Definitions:

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Net Cash Provided

The total amount of cash generated by a company's operations, investments, and financing activities within a specific time frame.

Cash Dividends

Payments made by a company out of its earnings to its shareholders, often distributed on a regular basis.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for the effects of transactions not involving cash.