Which of the Following Statements Concerning Beta Are Correct

question 89

Multiple Choice

Which of the following statements concerning beta are correct?
I.Stock with high standard deviations of returns will always high betas.
II.The higher the beta, the higher the expected return.
III.A beta can be positive, negative, or equal to zero.
IV.A beta of .35 indicates a lower rate of risk than a beta of -0.50.

• A)II and III only
• B)I and IV only
• C)II, III and IV only
• D)I, II, III and IV

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Definitions:

Automatic Responses

Reactions that occur without conscious thought, often as a result of learned behaviors or instincts.

Predictor Of Happiness

A factor that is indicative or capable of forecasting the presence and level of an individual's happiness.

Affect Balance

The frequency of positive emotions minus the frequency of negative emotions

James-Lange Theory

A theory of emotion suggesting that physiological arousal precedes the emotional experience, implying that different emotions are associated with specific bodily responses.